SS&C faces competition to buy Australian fund admin GBST Holdings

SS&C has entered into a non-binding proposal to buy GBST for approximately $155 million.

By Joe Parsons

SS&C Technologies is facing competition from UK FinTech firm FNZ to acquire Australian fund administrator GBST Holdings.

The Connecticut-based technology giant has entered into a non-binding proposal to buy GBST for approximately $155 million, which equates to AUD$3.25 per-share.

However, while both firms have entered into certain exclusivity arrangements, there are no assurances of the transaction between SS&C and GBST being consummated or the terms of the deal, SS&C stated.

Meanwhile FNZ, which is backed by $200 billion Canadian pension fund CDPQ, has put in a bid of AUD$3.50 per-share, valuing GBST at around $165 million.

GBST provides administration and transaction processing software for retail wealth management firms, regional investment banks, local custodians, and superannuation funds. Its clients include Citi, Deutsche Bank, JP Morgan, NAB Asset Servicing, Russell Investments and UniSuper.

GBST stated it was granting SS&C a four-week period to conduct due diligence, after a rival Australian fund administrator Bravura Solutions pulled its offer.

If completed, the acquisition will be SS&C’s first for this year, following on from a busy 2018 where the technology and fund administration giant finalised deals for DST Systems, Eze Software and Intralinks.

FNZ has recently taken on a number of high-profile clients for its blockchain-based fund administration platform, including Legg Mason, Aberdeen Standard Life, Kames Capital, Equity Trustees Fund Services and Merian Global Investors.