Following the news last week that private equity firm TPG had made an offer to buy fund administrator GlobeOp, rival fund administrator SS&C has acknowledged that it is reviewing a possible bid of its own for GlobeOp.
SS&C has been conducting due diligence on GlobeOp since January 14, the firm said today in a statement. GlobeOp confirmed in a statement that it has been providing due diligence information to SS&C, which has included access to management and a data room.
SS&C says it continues to consider its options in respect of GlobeOp, including a possible cash offer for the company, despite TPGs agreement last week to buy the administrator. TPGs offer of 508 million in cash represents a premium of 48.5% over GlobeOps closing share price on January 5.
GlobeOp confirmed it has not yet received any proposal or formal indication of interest from SS&C.
The independent directors will continue to work with SS&C and any other interested parties to maximize shareholder value, but in the absence of a better competing offer, continue to recommend the offer by TPG, which they believe represents good value for shareholders, according to a statement from GlobeOp.
It emerged in early January that GlobeOp was in talks with several private equity firms, including TPG, about a possible takeover. The administrator says it had $173 billion in assets under administration as of December 21.
SS&C stressed that its due diligence review of GlobeOp does not constitute a firm intention to make an offer for the administrator. There can be no certainty that an offer will be made by SS&C, nor, if made, that a transaction will result, according to the firms statement. A further announcement will be made at the appropriate time.
In the third quarter last year, SS&C acquired Dublin-based BDO Simpson Xavier Fund Administration Services Limited, now known as SS&C Fund Services Ireland Limited. An acquisition of GlobeOp, whose assets under administration nearly rival those of SS&Cs $224 billion, would be a much bigger undertaking. SS&Cs revenue in the third quarter last year, the latest data available, was $94.3 million.
Separately, GlobeOp announced today that it has appointed Tim Ridley to its Cayman Islands subsidiary board. Ridley, the former chairman of the Cayman Island Monetary Authority (CIMA) and a former senior partner of Maples and Calder, was appointed following the recent resignation of Gary Linford. Linford notified the firm of his intention to pursue other opportunities last year, so his departure is not believed to be related to the latest acquisition talks, a GlobeOp spokesperson told Global Custodian.
(CG)