SS&C Technologies (SSNC) offers a wide range of software products and related services that address front-office functions such as trading and modeling, middle-office needs such as portfolio management and reporting, and back-office operations such as accounting and performance measurement.
The company’s more than 7,000 clients include banks, hedge funds, private equity outfits, insurance companies and real estate investment trusts (REITs), managing more than $26 million in assets. About 90% of SS&C Technologies’ revenue comes from contracts that usually renew like clockwork—a testament to the quality and mission-critical nature of the company’s software solutions.
SS&C Technologies has a long track record of acquiring companies with inferior profit margins and bringing them up to speed by cross-selling SS&C Technologies’ other products to their customer base. The company went on an acquisition spree in recent months, acquiring DST Global Solutions, adding more than 100 clients worldwide, and Advent Software, serving more than 4,300 buyside clients.
SS&C Technologies rates a buy up to $65 per share for growth investors looking to build wealth over the long haul. Prospective investors should ease into this position, as the stock could pull back when the company announces the secondary equity offering to help fund the acquisition of Advent Software.
Peter Staas, Capitalist Times, www.capitalisttimes.com, 888-960-2759, April 16, 2015
