SS&C Technologies Holdings, a global provider of financial services software and software-enabled services, will acquire Advent Software, a provider of software and services for the global investment management industry, for $2.7bn in cash, equating to $44.25 per share plus assumption of debt.

SS&C plans to fund the acquisition and refinancing of existing debt with $3bn of debt financing and cash on hand and approximately $400m of equity.

The transaction, which is expected to close in the second quarter of this year, is subject to Advent stockholder approval, clearances by the relevant regulatory authorities and other customary closing conditions.

Bill Stone, chairman and CEO of SS&C, said: “The acquisition of Advent is a defining moment in the investment technology, services and support industry. SS&C is acquiring a pre-eminent business in the financial technology industry and this is an acceleration in the progression to cloud technology.”

Advent has more than 4,300 customers including asset managers, hedge funds, fund administrators, prime brokers, family offices and wealth management advisory firms, located across more than 50 countries worldwide including South Africa.

Headquartered in San Francisco, California, with more than 1,200 employees worldwide, Advent generated revenues of $397m for the 12 months ended December 31, 2014.

The software provider offers 14 different products with ‘Geneva’ being one of those, designed to support complex alternative investment strategies.

Pete Hess, CEO of Advent Software, said: "We take great pride in the role that Geneva plays in the alternatives industry, and in the South African market. I'm really excited about the ways that we will be able to accelerate and augment the value we offer our fund administrator clients in South Africa and beyond after we complete the acquisition and become an independent business unit within SS&C.”

“In addition to our ongoing investment in Geneva and Geneva World Investor, I also see a lot of promise in the GO apps that SS&C's GlobeOp team has developed, and it's our intention to make those available to our fund administrator clients, which could enable them to further enhance the efficiency of their operations," he told Africa Global Funds.

Advent increases SS&C’s business and geographical diversification and scale and adds a stable and attractive revenue base, as demonstrated by its 90% recurring revenue rates over the last five years.

Meanwhile, the companies’ combined solutions and services will drive stronger long-term growth for the pro forma business and present significant cross-sell and cost savings opportunities.

The transaction represents a continuation of SS&C’s growth strategy through acquisitions in the financial services software and software-enabled services industries, as evidenced by 40 acquisitions to date including GlobeOp in 2012 and DST Global Solutions in 2014.

Stone said: “The acquisition reinforces our focus on our clients. Advent Software, combined with SS&C’s complementary offerings in SaaS, middle office services, regulatory solutions, mobile applications and FIX, is unmatched.”

Morgan Stanley and Deutsche Bank acted as financial advisers and Davis Polk & Wardwell acted as legal advisor to SS&C.

Qatalyst Partners acted as financial adviser and Wilson Sonsini Goodrich & Rosati acted as legal adviser to Advent.