Mainstream has come to the end of its scheme implementation deed with Vistra, which saw the multinational offer to buy all of its shares at $1.20 per share. The pair had agreed to “go shop” provisions that allowed Mainstream to solicit any competing proposals for a month.
The fund administrator paused trading on Monday before it revealed it had indeed received a superior offer from US financial technology firm SS&C Technologies.
SS&C has offered $2 per share for Mainstream, a 66.7 per cent increase on Vistra’s offer and valuing the group’s equity at around $285.7 million, including transaction costs and debt.
As a result, Vistra will now have four days to match or to beat SS&C’s offer.
SS&C stated it views Mainstream as an attractive acquisition opportunity as it would accelerate its growth ambitions, particularly in the Australian market. The deal is also considered complementary as the majority of Mainstream’s business is operated on SS&C technology.
The US group is a global provider to the financial services and healthcare industries, including wealth management, fund administration and retirement and pension fund services.
The firm stated it intends for Mainstream chief executive Martin Smith, to remain with the business after acquisition.
