SS&C Technologies, a provider of financial services software, has agreed to acquire Advent Software, a provider of software and services for investment management industry, for $2.7bn in cash.
Under the terms of the agreement, SS&C will pay $44.25 a share, a 7% premium to Advent’s closing price on 2 February 2015.
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Advent has more than 4,300 customers including asset managers, hedge funds, fund administrators, prime brokers, family offices and wealth management advisory firms, located across more than 50 countries worldwide.
Advent, which is headquartered in San Francisco, California, has more than 1,200 employees globally. It generated revenues of $397m for the 12 months ended 31 December 2014.
SS&C chairman and CEO Bill Stone said: "The acquisition of Advent is a defining moment in the investment technology, services and support industry. I am pleased to share this news, especially with Advent customers whom we are committed to serving.
"We look forward to speaking with all customers over the coming weeks and months. SS&C is acquiring a pre-eminent business in the financial technology industry and this is an acceleration in the progression to cloud technology,"
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By GlobalDataSS&C said it plans to fund the acquisition and refinancing of existing debt with $3bn of debt financing and cash on hand and approximately $400m of equity.
Both SS&C and Advent’s Board of Directors have unanimously approved the transaction, which is expected to close in the second quarter of this year.
