Tech giant SS&C Technologies is set to move forward with its acquisition of Australian fund services provider Mainstream Group for $225 million.
The announcement follows the conclusion of Scheme Implementation Deed with Vistra, which opted not to match SS&C’s offer.
Vistra had previously agreed to acquire Mainstream in March for $170 million, however the firm was granted a month to seek competing offers pursuant to agreed ‘go shop’ arrangements.
Mainstream is a provider of investment administration, middle–office, fund accounting, superannuation administration, share registry and unit registry (transfer agency) services to leading fund managers and superannuation funds, family offices and dealer groups.
It also holds assets under administration of over AUD$211 billion and services clients globally through its offices in Australia, Hong Kong, Singapore, Ireland, Malta, Isle of Man, the Cayman Islands and the US.
“We are very pleased the Mainstream Board is unanimously recommending our superior proposal. Mainstream management and employees have built a strong business with a world-class customer base,” said Bill Stone, chairman and CEO, SS&C Technologies.
“Together, we will be well-positioned to serve our customers with an enhanced product suite, offer exciting opportunities to our employees, and create value for our shareholders.”
The purchase will be subject to customary conditions, including approval by Mainstream shareholders, the relevant Australian court and certain regulatory approvals, and is expected to close in the third quarter of 2021.
The acquisition will be SS&C’s first announced of the year, after it decided to pull its $2.24 billion bid for Australian fund administrator Link Administration Holdings in January.
In March, it also completed its takeover of Capita’s life insurance and pensions servicing business in Ireland, a deal that had been agreed in April 2020.