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SS&C Technologies Sees FY16 Net Above Street Views On Pending Acquisition

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SS&C Technologies Holdings Inc (NASDAQ: SSNC) gained more than 9 percent Tuesday after it predicted 2016 earnings well ahead of Wall Street's expectations.

SS&C, which unveiled plans Monday to acquire Advent Software, Inc. (NASDAQ: ADVS) for $2.3 billion, or $44.25 a share, said synergies resulting from the deal will produce earnings next year of between $3.05 and $3.15 a share.

Wall Street expects the financial software provider will post 2016 earnings of $2.61 a share.

SS&C was changing hands recently at $0.01, up 10 percent; Advent gained more than 5 percent recently, trading at $43.77.

SS&C plans to fund the acquisition with $3 billion of debt financing and cash on hand, as well as $400 million of equity.

"Rapid de-leveraging" is expected via the combined cash flow of the two businesses, the companies said.

Morgan Stanley and Deutsche Bank have provided fully committed debt financing.

Annual savings resulting from the deal are estimated at $45 million after three years and "meaningful revenue synergies" are expected, the companies said.

The acquisition of Advent is expected to close in the second quarter, subject to Advent's shareholder approval and and regulatory clearance.

Posted-In: News Guidance M&A


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