SS&C Technologies Holdings (SSNC), a financial services software company, said Thursday that it will acquire Intralinks Holdings from Siris Capital Group for $1.5 billion.
Under the terms of the deal, payment will consist of $1 billion in cash and $500 million in SS&C stock with the price based on the average in the 30 days prior to closing. Frank Baker, the managing partner of Siris, is expected to join the SS&C board following the transaction.
Intralinks, a provider of technology for global banking and capital markets serving private equity firms and hedge funds, brings a “wealth” of expertise in the data sharing and collaboration tech industries, said Bill Stone, the chief executive of SS&C.
“Intralinks and SS&C share many of the industry’s largest customers and together we are well-positioned to meet the needs of major banks, alternative funds and other corporations seeking to automate document-centric, collaborative workflows,” he said.
Intralinks in 2017 had revenue of $303 million and adjusted earnings of $115 million. The company’s trailing 12-month revenue as of June 30 were up 9% year-over-year to $325 million, the company said. Trailing 12-month earnings before items was reported at $132 million with margins of 41%. SS&C said it expects an additional $15 million in run-rate cost savings achieved by 2021.
The deal will be immediately accretive to the company’s adjusted earnings and is expected to be leverage neutral for SS&C. The purchase price is 10.9 times expected 2018 adjusted earnings before items and 9.8 times after the effects of synergies.
SS&C said it has secured $1 billion in financing from Deutsche Bank (DB), Citigroup (C), RBC Capital Markets (RBC) and Credit Suisse (CS). The transaction is expected to close in the fourth quarter.