TPG Capital, the U.S. private- equity firm, won’t improve its 508 million-pound ($816 million) bid for GlobeOp Financial Services SA (GO/), clearing the way for SS&C Technologies Holdings Inc. (SSNC) to buy the hedge-fund administrator.
“Over the past few weeks TPG, had been pursuing a number of strategic alternatives in order to revise its offer,” the private-equity firm said in a statement today. “However, after substantial investigation, TPG has determined that an improved offer could not be concluded on terms which would deliver sufficiently strong returns to all stakeholders.”
SS&C, a Windsor, Connecticut-based developer of software for financial firms, offered 485 pence a share in cash for GlobeOp on March 14, trumping TPG’s 435-pence-a-share bid. SS&C today urged GlobeOp shareholders to accept its offer “as soon as practicable,” and no later than April 23, according to a statement. GlobeOp said separately its independent directors have recommended investors accept SS&C’s bid.
GlobeOp, which calculates funds’ management and performance fees, and determines monthly net asset values, has increased the amount of hedge fund assets it does administrative work for by $13 billion in the first quarter to $187 billion. While 2011 was the hedge fund industry’s second-worst year ever in terms of investment performance, money managers still opened more than 1,100 new firms, according to data provider Eurekahedge Pte.
The stock fell 1.6 percent to 482.5 pence in London trading, for a market value of about 519 million pounds. The shares closed at 293 pence on Jan. 5, the day before GlobeOp said it was in talks to be acquired.
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