SS&C Offers to Acquire Mainstream Group

Rhea-AI Summary

SS&C Technologies (Nasdaq: SSNC) announced a conditional Scheme Implementation Deed to acquire Mainstream Group Holdings (ASX: MAI) for A$2.00 per share, valuing the transaction at approximately A$296 million (US$225 million). Mainstream offers investment administration and fund accounting services across various locations, including Australia and the US. The deal is subject to approvals and may close in Q3 2021. SS&C aims to enhance its service offerings and revenue growth potential through this acquisition.

Positive

• Proposed acquisition price of A$2.00 per share implies a total enterprise value of about A$296 million, signaling confidence in Mainstream's market position.
• Acquisition expected to enhance SS&C's fund administration services in Australia and globally, potentially leading to revenue growth.

Negative

• Acquisition conditional on matching rights held by Vistra Group, which could delay or jeopardize the deal.
• Regulatory approvals and shareholder consent required could face uncertainties, impacting completion timeline.

WINDSOR, Conn., April 12, 2021 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that it has entered into a conditional Scheme Implementation Deed with Mainstream Group Holdings Limited (ASX: MAI, "Mainstream"). SS&C proposes to acquire 100% of the shares and outstanding equity rights in Mainstream at a price of A$2.00 per security pursuant to a scheme of arrangement. 

Mainstream is a provider of investment administration, middle office, fund accounting, superannuation administration, share registry and unit registry (transfer agency) services to leading fund managers and superannuation funds, family offices and dealer groups. The company serves clients globally through its offices in Australia, Hong Kong, Singapore, Ireland, Malta, Isle of Man, the Cayman Islands and the U.S.

Mainstream had previously entered into a Scheme Implementation Deed with Vistra Group at a lower offer price and under that deed, Vistra has certain matching rights. The Scheme Implementation Deed entered into by SS&C is conditional on the ultimate outcome of that matching right process. Depending on the outcome, if the acquisition by SS&C proceeds, it will be recommended by the board of directors of Mainstream.

"Mainstream Group's fund and superannuation services complement SS&C's extensive administration offerings in Australia and throughout the world and demonstrate great revenue growth potential," said Bill Stone, Chairman and CEO.

Terms of the proposed acquisition imply an enterprise value for Mainstream of approximately A$296 million or approximately US$225 million (including transaction costs and net debt). If the acquisition proceeds, it will be subject to customary conditions, including approval by the shareholders of Mainstream, the relevant Australian court and certain regulatory approvals, and will be expected to close in the third quarter of 2021.

Mainstream is being advised by Miles Advisory Partners as financial adviser and Maddocks as legal adviser.

SS&C is being advised by Citi as financial adviser and Gilbert + Tobin as legal adviser.

About Mainstream Group Holdings

Mainstream Group Holdings Limited (ASX: MAI) provides fund and superannuation administration services underpinned by investment in people, processes and technology. As at December 2020, Mainstream provides administration services to 1,202 funds and more than 157,000 investors with funds under administration of AUD $224 billion. Mainstream employs 305 people, with operations in Australia, Singapore, Hong Kong, the United States, the Isle of Man, Malta, Ireland and the Cayman Islands. For more information, please visit: https://www.mainstreamgroup.com.

About SS&C Technologies

SS&C is a global provider of services and software for the financial services and healthcare industries. Founded in 1986, SS&C is headquartered in Windsor, Connecticut, and has offices around the world. Some 18,000 financial services and healthcare organizations, from the world's largest companies to small and mid-market firms, rely on SS&C for expertise, scale, and technology.

Additional information about SS&C (Nasdaq:SSNC) is available at www.ssctech.com.  
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SOURCE SS&C

FAQ

What is the acquisition price SS&C is offering for Mainstream Group?

SS&C is proposing to acquire Mainstream Group for A$2.00 per share.

What is the total enterprise value of the Mainstream acquisition?

The total enterprise value of the Mainstream acquisition is approximately A$296 million (US$225 million).

When is SS&C expected to finalize the acquisition of Mainstream?

The acquisition is expected to close in the third quarter of 2021, pending approvals.

What services does Mainstream provide?

Mainstream offers investment administration, fund accounting, and superannuation administration services.

What are the conditions for SS&C's acquisition of Mainstream?

The acquisition is conditional on the outcome of matching rights held by Vistra Group and various regulatory approvals.