WEST PALM BEACH, FL (www.hedgeco.net) – Carlyle Hedge Fund Company of New York has purchased SS&C Technologies Inc., a hedge fund software provider to asset managers and other firms. There areexpectations about the need for greater consolidation within the hedge fund industry. Through the purchase of SS&C, Carlyle hopes to gain access to hedge funds using such services foradministrative purposes. Carlyle, with $30 billion under management is the world’s biggest private equity firm, the firm has been seeking to acquire software and technology companies for sometime.
According to the details of the deal, Sunshine Acquisition Corp., an affiliate of Carlyle Asset management has agreed to pay SS&C stock holders, �$37.25 in cash for each share, a 15.7 percent premium over the average closing price of SS&C’s stock for the last 30 trading days.� The deal which is expected to close during the fourth quarter is valued at about $982 million.
According to Carlyle, the financing of the acquisition will be handled through a combination of equity from investment funds affiliated with Carlyle Asset Management, debt financing from Wachovia affiliates, as well as through J.P. Morgan and Bank of America.
The SS&C Chairman and Chief Executive Officer will have about a 28 percent stake in the Sunshine Acquisition Corporation according to the report. Sun Trust Robinson Humphrey, Wachovia Securities, and America�s Growth Capital have been chosen as the financial advisers, while William Cutler Pickering Hale and Door LLP, and Nicholas, Arshat and Tunnell, and other companies have been selected as the legal advisers.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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