01—Abstract
Summary
Summary of the 8-K filed September 12, 2024. Cited figures are marked; the original filing is the authoritative source.
SS&C Technologies Holdings, Inc. (Nasdaq: SSNC) announced on September 12, 2024 that its wholly-owned subsidiary, SS&C Technologies, Inc., has entered into a definitive agreement to acquire Battea-Class Action Services, LLC.
The purchase price is approximately $670 milliona, subject to certain adjustments, and the company expects the acquisition to close this year. SS&C expects the transaction to be accretive over the next 12 months. To finance the deal, the Company intends for SS&C to borrow, subject to market and other conditions, up to $650 million in aggregate principal amount of incremental term A loans under its existing amended and restated credit agreement dated April 16, 2018.
The Company has engaged one or more financial institutions to arrange the loans on an uncommitted basis. Net loan proceeds, together with cash on hand, will be used to pay for the acquisition and related fees, costs and expenses. The acquisition expands SS&C's offerings in securities class action claims management and settlement recovery.
Battea, which has more than 100 employees based in Stamford, Conn., San Francisco and Copenhagen, will join SS&C GlobeOp. The press release states that Battea serves more than 900 banks, asset managers, hedge funds and proprietary trading firms.
02—Key points
Key Highlights
- Definitive agreement signed for SS&C Technologies, Inc. to acquire Battea-Class Action Services, LLC for an approximate purchase price of $670 million, subject to certain adjustments.
- Company intends to borrow up to $650 million in incremental term A loans under its existing 2018 credit agreement, subject to market and other conditions, with loans to be arranged on an uncommitted basis.
- Net loan proceeds plus cash on hand will fund the acquisition and related fees, costs and expenses.
- The acquisition is expected to close this year and is expected to be accretive over the next 12 months.
- Battea adds securities class action claims management, litigation research, claims filing, and award processing and distribution capabilities to SS&C.
- Battea serves more than 900 institutions and has more than 100 employees across Stamford, Conn., San Francisco and Copenhagen, who will join SS&C GlobeOp.
- The Battea Claims Engine currently monitors 700-800 cases in litigation and 340 settlements in payout, supported by a research library of more than 8,000 historical cases.
03—Questions
Frequently Asked Questions
How much is SS&C paying for Battea-Class Action Services?
The purchase price is approximately $670 million, subject to certain adjustments, according to the press release attached as Exhibit 99.1.
How will SS&C finance the acquisition?
The Company intends for SS&C to borrow up to $650 million in aggregate principal amount of incremental term A loans under its existing credit agreement, subject to market and other conditions, and to use those net proceeds together with cash on hand. The press release states the company plans to fund the purchase with a combination of debt and cash on hand.
When is the acquisition expected to close?
The press release states that the acquisition is expected to close this year. The filing does not specify a more precise date.
What does Battea do and what will it add to SS&C?
Battea is a provider of securities class action claims management and settlement recovery services. Per the press release, it adds litigation research and case tracking, data collection and analysis, claims filing across case and instrument types, results audit and remedial actions, and award processing and distribution to SS&C's offerings.
What is the expected financial impact of the deal?
SS&C expects the transaction to be accretive over the next 12 months, according to the press release. The filing does not provide further financial projections.
04—Continue