SS&C’s Strategic Acquisition of Battea: A Deep Dive into Synergy Benefits
When SS&C acquired Battea, a securities class action services company, their goal was clear: to expand Battea’s reach among their financial services clientele and beyond. With over 100 employees and their leadership now part of the SS&C team, the acquisition has positioned Battea to be a key player in navigating the complex landscape of securities settlements related to litigation lawsuits. This move aligns perfectly with SS&C’s fund administration business GlobeOp and opens up a world of possibilities for both companies.
The deal, valued at $670 million in debt and cash, was a strategic move for SS&C to enhance their services for their clients. Bill Stone, the CEO of SS&C, emphasized the potential for growth by highlighting that SS&C’s extensive client base of 22,000 can provide Battea with a wealth of new opportunities. Stone noted that this acquisition is a natural progression of SS&C’s relationship with Battea, which started around five years ago through Battea’s connection with Eze Software, an SS&C investment management branch.
Despite some initial concerns regarding debt and integration costs, credit ratings agency Moody’s maintained its “stable” rating on SS&C’s debt post-acquisition. This move is seen as a positive step forward, with Moody’s recognizing the synergies between Battea’s offerings and SS&C’s existing services, providing cross-selling opportunities and international expansion potential.
On an earnings call in October, Stone shared that Battea boasted approximately $95 million in annual revenue with a 45% EBITDA margin and was experiencing a healthy growth rate. Mike McCreesh, CEO of Battea and managing director at SS&C, also expressed enthusiasm about the acquisition, highlighting the increased access to clients and opportunities that come with being part of the larger SS&C ecosystem.
Overall, the SS&C and Battea acquisition represents a strategic move that promises to deliver mutual benefits and opens up new avenues for growth and collaboration.
