SS&C Technologies Holdings Inc. said it’s weighing a potential cash offer for GlobeOp Financial Services SA, even after TPG Capital LLP agreed to buy the hedge fund administrator last week.
SS&C, a U.S. developer of software for financial firms, has been conducting due diligence on GlobeOp since Jan. 14, the company said in a statement today. GlobeOp, which confirmed it had provided information to SS&C, said in a statement it hasn’t received any formal indication of interest from the company.
TPG, the private-equity firm run by David Bonderman, agreed to buy GlobeOp for about 508 million pounds ($800 million) on Feb. 1. The Fort Worth, Texas-based firm said it would pay 435 pence a share in cash, 49 percent more than the closing price on Jan. 5, the day before GlobeOp said it was in talks to be acquired.
“As a direct competitor, SS&C has the advantage over a financial buyer of being able to drive material cost and revenue synergies with GlobeOp, enabling it to pay a higher headline multiple,” Jonathan Imlah, an analyst at Collins Stewart in London, wrote in a report to clients today. “That said, the move would be a very sizeable acquisition for SS&C, far bigger than the small bolt-ons that it has done in the past.”
The stock climbed 5.6 percent to 455 pence in London trading, for a market value of about 482 million pounds.
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 about 16 percent to $173 billion over the past year. 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.