M and A
SS&C To Acquire Global Funds Network For $1.0 Billion
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One of the largest banking and wealth sector technology firms – based in the US – has agreed to acquire Calastone, a business headquartered in London which provides a global funds network. The deal speaks to continued consolidation and ferment in the fintech space.
Nasdaq-listed financial software and solutions group SS&C
Technologies is to buy Calastone, a global
funds network and technology solutions provider to the wealth and
asset management industry.
The deal is valued at about £766 million ($1.03 billion), the
firms said in separate statements issued yesterday. SS&C is
buying the firm from Carlyle Group, the private equity firm.
Carlyle had bought a majority stake in Calastone in October
2020.
The acquisition move is subject to customary regulatory
approvals; it is expected to close in the fourth quarter of this
year.
The transaction will mean that SS&C integrates Calastone –
founded in 2007– with SS&C’s global investor and
distribution solutions platform to provide real-time, automated
fund processing, so WealthBriefing and
WealthBriefingAsia understands from the industry.
Calastone’s ascent is an example of how the “plumbing” behind the
fund management sector is becoming increasingly automated.
Calastone offers automated routing, settlement, dividend and
transfer services to fund asset managers.
The deal appears an example of the kind of large-scale M&A
taking place in the fintech sector. For example, in late
January 2021, Thomson Reuters, the media and information
group, said it and private equity funds affiliated with
Blackstone closed the sale of Refinitiv to London Stock Exchange
Group. In November 2024, Bain Capital wrapped up its $4.5 billion
acquisition of Envestnet, the US wealth industry’s largest
turnkey asset management programme and software service
provider.
As for SS&C, the move is something of a push for market share
and revenue growth. According to Morgan Partners, a US investment
bank, SS&C had, as of the second quarter of 2025, an
enterprise value (EV) of more than $27 billion and revenue growth
of 6.9 per cent; enterprise value divided by earnings before
interest, taxation, depreciation and amortisation (EBITDA) was
13.1 times EV. By comparison, Moody's Investor Services has an
EV/EBITDA multiple of 27.8x, and Broadridge Financial Solutions
is 22x, and MSCI is 27x. In revenue terms, EV for SS&C was at
about 4.5 times, the Morgan Partners report said.
Hailing the case for buying Calastone, SS&C said that the
firm “operates the largest global funds network, connecting more
than 4,500 of the world’s leading financial organisations across
57 markets.”
SS&C said it expects the acquisition to be accretive [to
earnings] within 12 months and plans to fund the purchase with a
combination of debt and cash on hand.
Calastone’s roster of more than 250 staffers in London,
Luxembourg, Hong Kong, Taipei, Singapore, New York and Sydney are
expected to join SS&C Global Investor & Distribution
Solutions, reporting to general manager Nick Wright.
Calastone operates the world’s largest transaction network for
investment funds, connecting more than 4,500 financial
organisations across 57 markets.
“This is a proud moment for everyone at Calastone,” Julien
Hammerson, Calastone CEO, said. “SS&C’s global scale and deep
expertise across fund services and technology will enable us to
accelerate innovation and deliver new digital capabilities to the
market. We look forward to working together to deliver
transformational services to asset and wealth managers and drive
growth.”
Bill Stone, chairman and CEO of SS&C Technologies, said:
“Calastone has built an impressive network and platform, and
together we will create a more connected, automated and
intelligent global fund ecosystem.”
Barclays served as exclusive financial advisor to Calastone.
Linklaters and Mishcon De Reya served as legal advisors to
Calastone in connection with the transaction.
Founded in 1986, SS&C is headquartered in Windsor,
Connecticut.