GlobeOp Declines Most in a Month After SS&C Buys Competitor

GlobeOp Financial Services SA (GO/) fell the most in London trading since January after potential takeover bidder SS&C Technologies Holdings Inc. (SSNC) agreed to buy Thomson Reuters Corp. (TRI)’s Portia investment-operations business.

GlobeOp, a hedge-fund administrator, declined 1.7 percent to 458 pence in London trading. The shares dropped as much as 3.5 percent, the most since Jan. 27. GlobeOp had advanced 8.3 percent through yesterday after Fort Worth, Texas-based TPG Capital LLP agreed on Feb. 1 to buy the company.

SS&C, a Windsor, Connecticut-based developer of software for financial firms, began conducting due diligence on London- based GlobeOp in January, the company said in a Feb. 6 statement. SS&C agreed today to buy Portia, which helps investment managers track and manage portfolios, for $170 million. The transaction is set to be completed in the second quarter, pending regulatory approval, SS&C said in a statement.

“This deal significantly adds to our offerings in the portfolio-management software industry,” SS&C Chairman and Chief Executive Officer Bill Stone said in the statement. SS&C rose 1.1 percent to $20.89 at 2:16 p.m. in New York, its highest since July.

TPG, the private-equity firm run by David Bonderman, agreed to acquire GlobeOp for about 508 million pounds ($810 million) or 435 pence a share, in cash, TPG said in a Feb. 1 statement. That was 49 percent more than the closing price on Jan. 5.

ISS Recommendation

Institutional Shareholder Services said on Feb. 27 that shareholders shouldn’t accept the TPG offer because of the possibility that SS&C would make a competing bid.

“Share buybacks would better enhance shareholder value by boosting the share price and return cash to shareholders at a low cost for the company,” ISS said.

British regulations governing the takeover process prevented GlobeOp from discussing its possible acquisition, Chairman Ed Nicoll said today during a conference call to discuss the firm’s 2011 earnings. Operating profit increased 27 percent to $55.3 million, the company said.

A phone message seeking comment from SS&C wasn’t returned. Gavin Davis, a TPG spokesman in London, declined to comment. A GlobeOp spokeswoman, who refused to give her name, declined to comment.

Bloomberg LP, the parent of Bloomberg News, competes with Thomson Reuters in selling financial and legal information and trading systems.

To contact the reporter on this story: Patrick Clark in New York at pclark48@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net

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