SS&C may scupper TPG’s GlobeOp bid

Financial software provider SS&C Technologies Holdings is eyeing GlobeOp Financial Services and has urged the hedge fund administrator’s shareholders not to accept a 508 million pound ($802 million) takeover offer from TPG Capital, writes Reuters. GlobeOp’s management said it would recommend TPG’s cash offer to its shareholders, the first step in the US buyout group’s effort to build a presence in the business of servicing the $2 trillion hedge fund industry.

Reuters – Financial software provider SS&C Technologies Holdings Inc is eyeing GlobeOp Financial Services SA and has urged the hedge fund administrator’s shareholders not to accept a 508 million pound ($802 million) takeover offer from TPG Capital.

GlobeOp’s management said last Wednesday it would recommend TPG’s cash offer to its shareholders, the first step in the U.S. buyout group’s effort to build a presence in the business of servicing the $2 trillion hedge fund industry.

But in a statement on Sunday, Windsor, Connecticut-based SS&C said it had been conducting due diligence on GlobeOp since Jan. 14 with the approval of GlobeOp’s independent directors and said shareholders should wait for its next move.

“SS&C continues to consider its options in respect of GlobeOp, including a possible cash offer for the company and urges GlobeOp shareholders to take no action at this time,” SS&C said in the statement.

There can be no certainty that an offer will be made by SS&C or that a transaction will happen and a further announcement will be made at the appropriate time, it added.

TPG has offered 435 pence per share in cash for London and New York-based GlobeOp, which administers $173 billion in client assets and which last month kicked off a strategic review to try and boost its share price.

Shareholders including Aberforth Partners and Standard Life Investments have already indicated they will accept TPG’s offer, meaning that close to 44 percent of GlobeOp’s investor base is backing that deal.

TPG’s offer marks a premium of nearly 50 percent to GlobeOp’s Jan. 5 share price, just before it announced it was in talks with TPG. GlobeOp shares closed at 431 pence on Friday, just below TPG’s offer.

Time for SS&C to show its hand is limited. GlobeOp said on Feb. 1 that TPG’s offer document was expected to be published within four weeks.

SS&C did not comment on what resources it would have to make an offer for GlobeOp. The company finished the quarter ending Sept. 30 with $76.2 million in cash and cash equivalents and $172.7 million in debt for a net debt balance of $96.5 million. It has a market capitalization of $1.45 billion.

More than 5,000 financial services organizations, collectively managing over $16 trillion in assets, use SS&C’s products and services, according to the company.