WINDSOR, Conn. - SS&C Technologies Holdings, Inc. (NASDAQ: SSNC), a provider of services and software for the financial services and healthcare industries, has completed the purchase of Battea-Class Action Services, LLC. The acquisition, which cost approximately $670 million, was finalized today, with SS&C funding the transaction through a mix of debt and cash.
The company anticipates that the acquisition will be accretive over the next year. Battea-Class Action Services, recognized for its expertise in securities class action claims and settlement recovery, has been operating for over two decades and serves more than 900 institutions globally, including some of the world's largest banks and funds.
With this acquisition, over 100 Battea employees from offices in Stamford, San Francisco, and Copenhagen will join SS&C. "We are pleased to welcome Battea's employees, customers and partners," said Bill Stone, SS&C's Founder and CEO. He added that the merger is expected to bring "sophisticated new capabilities to clients," capitalizing on the synergies between the two companies.
SS&C, established in 1986 and headquartered in Windsor, Connecticut, supports approximately 20,000 financial services and healthcare organizations worldwide. Battea's role in the industry as a global leader in processing settlement claims in antitrust and securities litigation is poised to complement SS&C's existing services.
The transaction received legal guidance from Davis Polk & Wardwell LLP for SS&C, while Keefe, Bruyette & Woods, Inc. and Sidley Austin LLP served as financial and legal advisors, respectively, for Battea.
This news is based on a press release statement and provides an overview of the acquisition's completion without endorsing the claims.
In other recent news, SS&C Technologies Holdings, Inc. has been the focus of several positive developments. The company's second quarter of 2024 results exceeded expectations, with organic revenue growth of 6.4% and an adjusted diluted earnings per share increase of 17.6% year-over-year. SS&C also announced a definitive agreement to acquire Battea-Class Action Services for approximately $670 million, a move expected to enhance the company's financial recovery services.
Further, SS&C's Board of Directors approved an increase in the company's quarterly dividend from $0.24 to $0.25 per share, following reported growth in net cash from operating activities. In the realm of analyst opinions, both Needham and RBC Capital adjusted their outlook on SS&C, raising their price targets while maintaining positive ratings.
These recent developments underscore SS&C's robust financial health and strategic growth initiatives. As the company continues to pursue growth opportunities, these advancements are expected to contribute positively to SS&C's future trajectory.
InvestingPro Insights
SS&C Technologies' acquisition of Battea-Class Action Services for $670 million aligns with the company's growth strategy and financial performance. According to InvestingPro data, SS&C's market capitalization stands at $18.14 billion, reflecting its significant presence in the financial services and healthcare software sector.
The company's revenue growth of 5.19% over the last twelve months and 6.52% in the most recent quarter indicates a steady expansion, which could be further bolstered by this strategic acquisition. SS&C's impressive gross profit margin of 49.38% suggests strong operational efficiency, which may help in integrating Battea's operations smoothly.
InvestingPro Tips highlight that SS&C has raised its dividend for 7 consecutive years, demonstrating a commitment to shareholder returns. This consistent dividend growth, coupled with the company's profitability over the last twelve months, indicates financial stability that supports its acquisition strategy.
The acquisition's anticipated accretive effect aligns with another InvestingPro Tip, which notes that net income is expected to grow this year. This growth projection, combined with SS&C's strong return over the last three months (18.35% according to InvestingPro data), suggests investor confidence in the company's strategic decisions.
For readers interested in a deeper analysis, InvestingPro offers 8 additional tips that could provide further insights into SS&C's financial health and market position.
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