SS&C Boosts Finance Tech Offerings With New Acquisition

SS&C Technologies Holdings has bolstered its financial services industry portfolio after the Connecticut-based solution provider completed its acquisition Monday of Primatics Financial Holdings Inc.

Details of the deal, which was announced in September, were not disclosed.

The Primatics platform, called EVOLV, is a cloud-based compliance and finance solution that handles nearly all aspects of the loan lifecycle, from creation through reporting.

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In a statement, SS&C Chairman and CEO Bill Stone said EVOLV represents an addition to SS&C's integrated solution portfolio that immediately adds a significant value to the company's offerings.

EVOLV "is already widely adopted among North American banks," he said. "We’re excited to leverage Primatics’ intellectual property.’

Windsor Conn.-based SS&C - No. 38. on CRN's Solution Provide 500 list - has boosted its financial services industry offerings over the last year. It acquired DST Global Solutions for $95 million in December 2014 before scooping up three companies in as many months this summer: Advent Securities, for about $2.7 billion, in July; Citigroup's Alternative Investor Services business for $425 million in August, and Varden Technologies in September 2015. The price of that deal was not disclosed but, according to the web site Market Realist, the combined price for Varden and Primatics was in the neighborhood of $122 million.

SS&C has built up its cash holdings to pay for its acquisitions, boosting its cash by 725 percent in the company's second quarter. That dropped 35 percent to $503.8 million in the third quarter, after the closings of the Advent and Varden acquisitions.

SS&C reported in its earnings that it expects to pick up about 55 Primatics clients, which will add $56 million in revenue during the 2015 fiscal year.

Primatics, based in McLean, Va., has 384 employees.

Stone said in the third-quarter earnings call earlier this month that he expects SS&C earnings "tick up" during the coming year with margins of 25 to 30 percent, generating $12 million to $14 million in pre-tax earnings.

"We think loans is a very, very strong asset class," he said, "and we think that's going to continue. The world is searching for yield. And this is one of the only places that they can get it. And we think that we're well positioned, and we think that Primatics will help us in that regard."

PUBLISHED NOV. 16, 2015