SS&C’s $1.45 Billion Acquisition of Eze Software

Ropes & Gray advised TPG Capital, a leading global alternative asset firm, and Eze Software, a leading global provider of investment management solutions, in the sale of Eze Software to SS&C Technologies Holdings, Inc. Under the terms of the agreement, SS&C will purchase Eze Software in an all-cash transaction of $1.45 billion.

SS&C Technologies Holdings, Inc. (Nasdaq : SSNC ), a global provider of financial services software and software-enabled services, has entered into a definitive agreement wherein SS&C will acquire Eze Software (Eze Software) from TPG Capital. Eze Software is a leading global provider of investment management solutions designed to optimize operational and investment alpha throughout the entire investment process. The transaction represents a continuation of SS&C’s proven strategy of adding talented people and technology through acquisitions. Under the terms of the agreement, SS&C will purchase Eze Software in an all-cash transaction of $1.45 billion.

Headquartered in Boston, Eze Software serves asset managers, including a mix of hedge fund, long-only asset manager, multi-manager and asset owner clients. At the core of Eze Software’s offering is its award-winning, flagship Eze Investment Suite platform. Eze Investment Suite offers order management, execution management and portfolio accounting to streamline front-to-back-office workflows. The acquisition will add 1,050 employees in 15 offices and more than 2,500 clients across five continents. SS&C will leverage its global footprint to help Eze Software expand its geographic reach.

In 2017, Eze Software had total revenues of $280 million and Adjusted EBITDA of $105 million. SS&C expects $30 million of run-rate costs savings, achieved by 2021. SS&C plans to fund the acquisition with a combination of cash and term loan debt. The transaction is expected to be immediately accretive to adjusted earnings per share.

The transaction is expected to close by the fourth quarter of 2018 and is subject to clearances by the relevant regulatory authorities and other customary closing conditions.

The Ropes & Gray team was led by private equity partner Amanda McGrady Morrison (Picture), tax partner Pamela Glazier, benefits partner Adam Stella, finance partner Michael Lee, IP transactions partner James DeGraw, labor & employment partner Megan Bisk, hedge fund counsel Brynn Rail and associates Thomas Fraser, Benjamin Rogers and William Baker.

 

Involved fees earner: Amanda McGrady Morrison – Ropes & Gray; Brynn Rail – Ropes & Gray; Thomas Fraser – Ropes & Gray; Benjamin Rogers – Ropes & Gray; William Baker – Ropes & Gray; Pamela Glazier – Ropes & Gray; Adam Stella – Ropes & Gray; Michael Lee – Ropes & Gray; James DeGraw – Ropes & Gray; Megan Bisk – Ropes & Gray;

Law Firms: Ropes & Gray;

Clients: TPG Capital;

 

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Author: Ambrogio Visconti