The purchase continues the trend of back- and middle-office service providers enhancing their front-office capabilities, following the news that State Street will buy Charles River Development for $2.6 billion.
The deal is SS&C’s third of the year, and the technology giant renowned for acquisitions, particularly in the fund administration world after acquiring the businesses of Citi, Wells Fargo and Conifer in recent years.
SS&C also put in a bid for trading technology vendor Fidessa in April, however it was eventually bought by ION Investment Group for £1.5 billion.
“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.
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.
Eze Software provides execution management systems (EMS) and order management systems (OMS) to asset managers and has itself acquired companies to improve its offerings. The company exists today as a combination of Eze Castle Software, RealTick, and Tradar.
In 2017, Eze Software had total revenues of $280 million and Adjusted EBITDA of $105 million.
SS&C said it expects $30 million of run-rate costs savings, achieved by 2021 and plans to fund the acquisition with a combination of cash and term loan debt.
“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.”
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