SS&C buys DST for $5.4 billion in cash

Firm aims to expand wealth management presence with acquisition

Jan 11, 2018 @ 2:31 pm

By Ryan W. Neal

Financial software giant SS&C announced Thursday its largest acquisition to date: a $5.4 billion cash purchase of DST Systems, a rival technology provider to asset managers, brokerages, retirement firms and health-care providers.

The acquisition expands SS&C's presence in the U.S. wealth management and retirement industries, as well as its overall scale, adding $3.9 billion in combined pro forma revenue and 13,000 clients.

Bill Stone, chairman and chief executive of SS&C, said in a statement that the acquisition will bring the automation and efficiencies from SS&C's software for institutional and alternative asset managers to DST's clients across the wealth management industry.

"The rate of change, the technology required, and the requirements of integrated solutions in the investment and wealth management space are unprecedented," Mr. Stone said. "The combination will position us to capitalize on the demand for outsourcing in financial services and better enable our clients to address increasing competitive and regulatory pressures."

Rahul Kanwar, executive vice president at SS&C, said his firm has traditionally focused on accounting, middle- and back-office needs, but said they've built some technology that wealth managers are looking for, like client portals, mobile apps and adviser-client interaction tools.

The purchase represents a continuation of SS&C's growth through acquisition. In October 2016, SS&C bought Salentica, a firm that provided client relationship management software to large wealth managers (firms with an average $3 billion in assets under management).

Before the DST acquisition, SS&C's largest purchase was in February 2015, when it spent $2.7 billion for Advent Software, which owns the Black Diamond portfolio management platform.

SS&C has a history of deals with DST. In 2014, the company acquired DST's data analytics unit for $95 million, according to Reuters.

SS&C expects to achieve $150 million a year in cost savings by 2020, but did not indicate if layoffs will play a role.

"I think it's too premature for us to be talking about layoffs," Mr. Kanwar said.

He said SS&C looks at acquisitions as a way to bring in "a great, incredibly talented workforce" who are experts in their field.

Mr. Stone agrees.

"We are ... excited to have the DST employees from around the world join the SS&C team and look forward to having a continued local presence in Kansas City," he said.


What do you think?

View comments

Recommended for you

Featured video


Advisers beware: tax law has unintended consequences

Commission accounts could be preferable for some clients, and advisers could be incentivized to move from employee broker-dealers to independent channels.

Recommended Video

Path to growth

Latest news & opinion

Bond investors have more to worry about than a government shutdown

Inflation worries, international rates pushing Treasuries yields higher.

State measures to prevent elder financial abuse gaining steam

A growing number of states are looking to pass rules preventing exploitation of seniors.

Morgan Stanley reports a loss of advisers after exiting the protocol for broker recruiting

The firm said it lost 47 brokers in the fourth quarter, the most in any quarter of 2017.

Morgan Stanley's wealth management fees climb to all-time high

Improvement reflect firm's shift of more clients into fee-based accounts priced on asset levels, which boosts results as markets rise.

Legislation would make it harder for investors to sue mutual funds over high fees

A plaintiff would have to state in their initial complaint why fiduciary duty was breached, and then prove the violation with 'clear and convincing evidence.'


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print