End of the consumer auction war | Financial standard


The intense bidding war for Mainstream appears to have ended after the administrator entered into a program implementation act with Apex Group.

Apex made a bid for 100% of the Mainstream shares at a price of $ 2.80 per share, valuing the company at $ 400 million, down from $ 2.76 over SS&C’s latest offering and $ 1.20 per share. Vistra.

SS&C did not exercise its counterpart right by the deadline, therefore, Mainstream terminated the act of implementing the program.

The directors of Mainstream unanimously recommended that shareholders vote in favor of Apex’s offer.

Apex’s offering includes an enterprise value for Mainstream of approximately $ 415 million, including transaction costs and net debt, and is 36 times forecasted EBITDA.

The offer follows an intense bidding war sparked by Apex bidding higher than SS&C’s initial offer of $ 2 per share, at $ 2.55 per share.

SS&C exercised its matching right and increased its offer to $ 2.56 per share for 100% of the shares of Mainstream.

From there, Apex offered $ 2.65 per share and SS&C matched its exercise right and increased its offer to $ 2.66 per share.

At the time, Mainstream supported the new revised SS&C scheme and ended discussions with Apex.

Mainstream recently recorded $ 272.2 billion in funds under advice, as its victory and Pendal entries saw FUA increase 21% from the previous quarter.

The admin currently has 348 clients and 1,042 funds at the end of March, up 1% (five new net clients) and 13% (162 net new funds) respectively from the December quarter.

Apex Group provides a broad range of solutions to asset managers, capital markets, private clients and family offices, and administers more than $ 1,100 billion in assets globally and employs 4,200 people in 46 offices.


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