DST Systems, Inc. has signed an agreement to acquire ALPS Holdings, Inc. for $250 million.
ALPS offers asset servicing, such as fund administration, accounting and transfer agency, as well as asset-gathering solutions to the investment management industry. At the end of 2010, it managed more than $3.28 billion in assets and serviced more than $291 billion in client assets. ALPS was rated in the most recent Hedge Fund Administration Survey in 2010, and in the 2011 Mutual Fund Administration Survey.
DST Systems offers products and services to the investment management and brokerage industries.
This transaction further underscores our commitment to expanding our distribution support and asset gathering capabilities,” says Tom McDonnell, CEO of DST Systems. “With our recent acquisitions of Finix Business Strategies and Subserveo, Inc., the company is well positioned to capitalize on the distribution side of the asset management industry. ALPS has a proven track record of managing, servicing and distributing products across the asset management spectrum, and we look forward to their continued growth and success.”
DST, in a statement, said it plans to operate ALPS as a standalone entity.
The transaction is subject to regulatory approval and certain conditions and is expected to close in fourth quarter 2011. The deal will be funded from cash and existing credit facilities.
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