SS&C Updates Offer on Acquisition of Mainstream Group

Rhea-AI Summary

SS&C Technologies announced an amendment to its acquisition offer for Mainstream Group at A$2.25 per share, following a competing offer of A$2.20 from a third party. The revised scheme of arrangement will be supported by Mainstream’s board, pending an independent expert's assessment of its benefits for shareholders. The acquisition values Mainstream at approximately A$332 million (US$259 million) and is set to close in Q3 2021, subject to shareholder and regulatory approvals. Mainstream provides diverse investment administration services globally.

Positive

• Increased acquisition offer to A$2.25 per share, enhancing shareholder value.
• Strategic acquisition expands SS&C's market presence in investment administration.

Negative

• Dependence on approval from Mainstream shareholders and regulatory bodies could delay the acquisition.
• Transaction includes costs and potential integration challenges post-acquisition.

WINDSOR, Conn., April 27, 2021 /PRNewswire/ -- SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) today announced that it has amended the Scheme Implementation Deed with Mainstream Group Holdings Limited (ASX: MAI, "Mainstream") to provide for an acquisition by SS&C of 100% of the shares and outstanding equity rights in Mainstream for A$2.25 per security pursuant to a scheme of arrangement. In the absence of a superior proposal, and subject to the independent expert concluding that the revised scheme is in the best interests of Mainstream shareholders, being customary carve-outs, the board of directors of Mainstream intends to support the revised scheme of arrangement on that basis.

SS&C has agreed to increase the consideration payable under the scheme after receipt by Mainstream of a non-binding indicative cash offer of $2.20 per security from a third party. As a consequence of such increase and related amendments, Mainstream has terminated any discussions with such third party.

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.

Terms of the proposed acquisition imply an enterprise value for Mainstream of approximately A$332 million or approximately US$259 million (including transaction costs and net debt). The purchase will be subject to customary conditions, including approval by Mainstream shareholders, the relevant Australian court and certain regulatory approvals, and is 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.
Follow SS&C on Twitter, Linkedin and Facebook.

View original content to download multimedia:http://www.prnewswire.com/news-releases/ssc-updates-offer-on-acquisition-of-mainstream-group-301277803.html

SOURCE SS&C

FAQ

What is SS&C's revised offer for Mainstream Group?

SS&C has increased its offer for Mainstream Group to A$2.25 per share.

What is the total enterprise value of Mainstream Group?

The acquisition implies an enterprise value of approximately A$332 million (US$259 million).

When is the acquisition of Mainstream Group expected to close?

The transaction is expected to close in the third quarter of 2021.

What factors could affect the acquisition completion of Mainstream Group?

The acquisition is subject to approval from Mainstream shareholders and relevant regulatory bodies.