Large city employer to be purchased

Jan 11, 2018
Photo by: Daniel Dunkle The DST campus on Water Street in Rockland. The company is being sold to a rival, it was announced Jan. 11.

Rockland — SS&C Technologies Holdings Inc., a financial services software company, announced Jan. 11 it is buying DST Systems Inc. as part of a $5.4 billion deal.

Employees at DST's Water Street offices in Rockland were informed of the sale Thursday. The company is estimated to have about 300 employees at the Rockland location.

DST bought Boston Financial Data Services Inc. in March 2017.

The press release on the deal said SS&C expects to achieve $150 million in cost savings annually by 2020, but did not say if the savings would be accomplished in part through layoffs.

Writing about the sale for the Kansas City Star, Mark Davis said, "Mergers between companies with overlapping businesses often lead to cost cutting in part through layoffs." He also described the Connecticut-based SS&C and the Kansas City-headquartered DST as business rivals.

"Putting the companies together means combining competing operations on some fronts, analyst Peter Heckmann with D. A. Davidson & Co. said in a note to clients Thursday morning," the article stated. "He suggested that some locations would close."

“We would expect cost synergies to stem from data center consolidation and reductions in corporate overhead. As well, we would expect divestitures (of non-core operations and investments) could help to reduce debt levels," Heckmann is quoted in the article as saying.

DST -- a global provider of technology and financial services -- has 14,400 employees worldwide.

"We are also excited to have the DST employees from around the world join the SS&C team..." said SS&C CEO Bill Stone. "The combination will position us to capitalize on the demand for outsourcing in financial services."

Boards of directors for both companies approved the transaction, and it is expected to close by the third quarter of this year. The deal is subject to DST's stockholder approval and clearances by the relevant regulatory authorities, the press release stated.

Spokespeople for the two companies could not be reached for comment.

Comments (1)
Posted by: Francis Mazzeo, Jr. | Jan 13, 2018 08:53

Won't be long and that facility will either be vacant or open for short term rentals.

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