SS&C Technologies stock steady as UBS reiterates Buy rating on Calastone acquisition

Published 22/07/2025, 16:02
SS&C Technologies stock steady as UBS reiterates Buy rating on Calastone acquisition

Investing.com - UBS has reiterated a Buy rating and $105.00 price target on SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) following the company’s acquisition announcement.

SS&C Technologies revealed it will acquire Calastone from Carlyle, describing the target as the "largest global funds network and provider of technology solutions to the wealth and asset management industries." The transaction is expected to close in the fourth quarter of 2025, with SS&C planning to fund the purchase through a combination of debt and cash.

Calastone currently connects more than 4,500 leading financial organizations across 57 markets and processes over £250 billion of investment value monthly. The acquisition aims to strengthen SS&C’s fund administration capabilities and enhance its artificial intelligence and intelligent automation execution.

The combined entity plans to deliver a unified platform designed to reduce cost and complexity within the global fund ecosystem. SS&C expects the integration to provide "enhanced distribution, investor servicing, and operational scalability."

UBS views the strategic move positively, maintaining its Buy recommendation as SS&C works to expand its service offerings through innovation and product diversification in the financial technology sector.

In other recent news, SS&C Technologies Holdings, Inc. announced a definitive agreement to acquire Calastone from Carlyle for approximately £766 million (US $1.03 billion). The acquisition, which is anticipated to close in the fourth quarter of 2025 pending regulatory approvals, is expected to enhance SS&C’s capabilities in fund administration and transfer agency services. SS&C plans to finance the acquisition with a mix of debt and existing cash and predicts it will be accretive within 12 months. DA Davidson has reiterated its Buy rating on SS&C Technologies, raising the price target to $98.00 from $94.00, ahead of the company’s upcoming second-quarter earnings report. The firm expects SS&C to meet or slightly surpass forecasts and possibly adjust its annual guidance. Additionally, DA Davidson highlighted SS&C’s Board of Directors’ approval of an expanded share repurchase program, allowing the company to buy back up to $1.5 billion in shares. The analyst expressed confidence in SS&C’s financial strategy, citing a projected free cash flow of over $1.1 billion in 2025. This financial strength is expected to provide SS&C with the flexibility to reduce debt, pursue further acquisitions, and continue share repurchases.

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