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NEW YORK (AP) — SS&C Technologies is buying Advent Software for $2.29 billion in a combination of providers of software for financial services companies.
The deal helps broaden SS&C's geographic reach and adds a stable revenue base from Advent, the companies said Monday. They also expect it to cut costs, saving about $45 million annually three years after the deal is complete. The sale is expected to close during the second quarter, pending approval by regulators and Advent stockholders.
SS&C is paying $44.25 per share, 6.9 percent higher than Advent's Monday closing price of $41.39. The deal is valued at $2.7 billion when including Advent's debt.
Advent Software Inc., of San Francisco, had $397 million in revenue in 2014. SS&C Technologies Holdings Inc. has not reported its fourth-quarter results yet, but the company had about $750 million in revenue over its last four quarters.
SS&C also said Monday that it expects a profit of $3.05 to $3.15 a share in 2016.
Analysts expect profit of $2.34 per share for 2014 and $2.59 per share this year, according to FactSet.
Advent stock rose $2.46, or 5.9 percent, to $43.85 in extended trading, while shares of Windsor, Connecticut-based SS&C gained $1.10, or 2 percent, to $55.65.
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