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DST Systems and SS&C Technologies shares tick higher after US$5.4bn buyout news

The acquisition is expected to add immediately to adjusted earnings per share and give rise to US$150mln in annual cost savings by 2020
merger
In premarket trade, SS&C was up 6.94% at US$47.69 while DST gained 4.08% at US$79.89.

DST Systems Inc (NYSE:DST) and SS&C Technologies Inc (NASDAQ:SSNC) saw their shares climb higher in premarket trade after DST agreed to be bought over by SS&C in a deal valued at US$5.4bn, which includes debt.

Under the deal, SS&C will pay US$84 per share in cash for each DST share, giving the information processing and serving company an implied market value of about US$5.06bn.

Buy-out to be completed in third quarter

SS&C, which offers software services for the financial services industry said it will fund the acquisition through a combination of debt and equity.

The buy-out is expected to close in the third quarter, it added.

SS&C said the acquisition is expected to add immediately to adjusted earnings per share and give rise to US$150mln in annual cost savings by 2020.

In premarket trade, SS&C was up 6.94% at US$47.69 while DST gained 4.08% at US$79.89.



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