Financial software maker, SS&C Technologies Holdings, Inc., said it will acquire Eze Software from TPG Capital.
Eze Software is a provider of investment management solutions designed to optimize operational and investment alpha throughout the entire investment process.
SS&C Technologies said 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.
“Our clients are focused on reinventing their organizations. The addition of Eze Software aligns with our strategy to transform today’s investment operations,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies.
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.
“I am very pleased for Eze to join SS&C, as we share the same vision for the future of investment operations,” said Jeffrey Shoreman, Eze Software’s CEO and President. “We look forward to extending our ideas and offering and believe this is a game-changing moment for our clients and our team. SS&C’s award-winning outsourcing services, combined with our technology platform, will enable us to further distance ourselves from the competition.”
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.