September 5, 2018 / 1:15 AM / 2 months ago

Exclusive: SS&C nears deal to buy Intralinks - sources

(Reuters) - Financial software company SS&C Technologies Holdings Inc is nearing a deal to buy data-sharing platform Intralinks Inc, in what would be its third major acquisition this year, people familiar with the matter said on Tuesday.

The move underscores how SS&C has embarked on an acquisition spree as it seeks to expand its financial services offerings beyond its core clientele of hedge funds and private equity firms. It agreed in July to buy Eze Software for $1.45 billion, to cater more to buyside investors. That was just three months after it closed a $5.4 billion deal to buy DST Systems Inc, to bulk up its products serving banks and healthcare institutions.

SS&C could reach an agreement with Intralinks’ private equity owner, Siris Capital Group LLC, as early as this week, the sources said, cautioning that negotiations could always fall through at the last minute.

Siris acquired Intralinks from Synchronoss Technologies Inc for about $1 billion just last year, and SS&C may now agree to pay roughly twice that, the sources added, requesting not to be identified because the negotiations are confidential.

SS&C, which had total debt of $7 billion as of the end of June, is still trying to finalize financing for the acquisition, and if a deal for the whole company cannot be reached, it may seek to buy a big part of Intralinks for about $1.3 billion, according to one of the sources.

SS&C, Intralinks and Siris Capital did not respond to requests for comment.

SS&C, based in Windsor, Connecticut, has a market capitalization of about $14 billion. Its customers include about 13,000 financial services and healthcare organizations.

Intralinks, which has over 90,000 clients, provides confidential cloud-based software, including virtual “data rooms” that enable companies to securely manage, control, track, search, exchange and collaborate on sensitive information.

Its offering also help deal professionals perform due diligence when buying and selling companies.

In 2016, Intralinks was acquired for $821 million by Synchronoss, which subsequently faced accounting issues and executive departures. It ended up selling Intralinks to Siris Capital less than a year later.

Reporting by Liana B. Baker and Greg Roumeliotis in New York; Additional reporting by Carl O'Donnell in New York; Editing by Leslie Adler

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