SS&C Technologies Holdings, Inc. · NASDAQ:SSNC
SS&C Technologies — Merger or Acquisition (January 2018)
17 slides from SS&C Technologies's merger presentation, Jan 11, 2018
Slide 1: SS&C to Acquire DST Systems
SS&C Technologies (NASDAQ:SSNC) Leading Software Provider to the Institutional, Alternative and Wealth Management Markets SS&C to Acquire DST Systems January 11, 2018
Slide 2: Safe Harbor Statement
Safe Harbor Statement Safe Harbor Statement Certain information contained in this presentation constitutes forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans,
Slide 3: Disclaimer
Disclaimer Disclaimer For the purposes of the following disclaimers, references to this "presentation" shall be deemed to include references to the presenters' speeches, the question and answer session and any other related verbal or written communications. This presentation is being made to you sol
Slide 4: SS&C Acquisition of DST
SS&C Acquisition of DST Strategically • Creates market leading position in investment and wealth management worldwide Compelling Combination • Expands SS&C’s footprint into the US retirement and wealth management markets • Adds 110+ million investor positions across DST’s client base • Ability to le
Slide 5: Transaction Summary
Transaction Summary Purchase • Purchase price of $84.00 per share in an all-cash offer Price • $5.4 billion enterprise value Synergies • Expect $150 million of run-rate cost savings annually, achieved by 2020 • Cost savings opportunities include operational, IT, G&A, marketing, facilities and public
Slide 6: Strategic Rationale
Strategic Rationale Combines two highly complementary market leaders • Creates scale player with $3.9 billion(1) in revenue and 13,000 clients 1 • Breadth across institutional, alternative and wealth management segments • Access to $25 trillion US retirement asset market Combined business well posit
Slide 7: DST at a Glance
DST at a Glance Leading provider of proprietary technology-based information processing and servicing solutions to Financial Services and Healthcare Key Facts Compelling Financial and Business Profile • Pro forma LTM 9/30/2017 revenue of $2.3 billion and Adj. Financial Services EBITDA of $459 millio
Slide 8: Combination Drives Significant Value for Clients
Combination Drives Significant Value for Clients Improved visibility into market evolution and client needs – enhancing the client’s experience #1 Fund Administrator in Alternatives #1 Administrator to Mutual Funds Benefits for Combined Client Base Institutional • Expands SS&C’s asset management foo
Slide 9: Highly Diversified Business Across Financial Services
Highly Diversified Business Across Financial Services SS&C + DST client footprint SS&C + DST revenue(1)(2) Hedge Mutual Funds Funds Healthcare 12% Private FOFs Equity Targeted 3% Alternative 29% Asset RIAs Wealth Managers Management 10% Managed Diversity across Wealth $3.9bn(3) Revenue Accounts end
Slide 10: Proven Track Record of Successful Acquisitions
Proven Track Record of Successful Acquisitions SS&C has completed 48 acquisitions to date Financial Models Thomson Reuters Company PORTIA GlobeOp DST Global Advent Date April 2005 May 2012 June 2012 November 2014 July 2015 Acquisition Purchase Price $159mm $170mm $834mm $95mm $2.6bn Margin Improveme
Slide 11: Proven History of Deleveraging
Proven History of Deleveraging Historical Leverage (reflected as net debt / consolidated EBITDA)(1) 6.8x 4.5x 4.2x 3.2x 3.0x 1.5x 2005 (2) 2010(3) 2012 (4) 2015 (5) 2015 (6) 2017 Acquisition 33 months Acquisition 24 months SS&C LBO SS&C IPO of GlobeOp post GlobeOp of Advent post Advent (1) See Appen
Slide 12: Transaction Meets ALL Key Criteria
Transaction Meets ALL Key Criteria • Combines leaders in Investment and Wealth Strategic fit • Management Access to $25 trillion US retirement market Ability to execute Value creation • Track record of execution and integration • Demonstrated value creation for • $150mm run-rate cost savings s
Slide 13: Appendix
Appendix
Slide 14: Combined Revenue Reconciliation
Combined Revenue Reconciliation Twelve months ended ($ in millions) 9/30/2017 SS&C revenue $1,638 DST revenue Operating revenue (as reported) $1,908 (+) Out-of-pocket reimbursements (as reported) 115 DST total revenue (as reported) $2,023 (+) BFDS / IFDS U.K. adjustments(1) 308 DST pro forma total r
Slide 15: SS&C Consolidated EBITDA Reconciliation
SS&C Consolidated EBITDA Reconciliation Twelve months ended ($ in millions) September 30, 2017 Net income $220.5 Interest expense, net 112.4 Provision for income tax 42.4 Depreciation and amortization 234.7 EBITDA $610.0 Stock-based compensation 41.7 Capital-based taxes 1.0 (1) Acquired EBITDA and c
Slide 16: DST Adjusted EBITDA Reconciliation
DST Adjusted EBITDA Reconciliation Twelve months ended ($ in millions) September 30, 2017 Reported GAAP operating income $283.3 Restructuring charges (1) 13.7 (2) Advisory and transaction costs 12.0 (3) Amortization of intangible assets 31.7 (4) Charitable contribution of securities 11.6 (5) Contrac
Slide 17: Consolidated EBITDA and Net Debt Reconciliation
Consolidated EBITDA and Net Debt Reconciliation ($ millions) Twelve months ended 9/30/2005 (1) 3/31/2010 6/30/2012 3/31/2015 9/30/2015 9/30/2017 Net income ($7.4) $24.1 $40.3 $130.9 $67.4 $220.5 (2) Interest expense, net (4.6) 36.5 17.3 24.0 49.4 112.4 Taxes 42.3 9.3 18.7 43.5 30.1 42.4 Depreciation
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