Encouraging Tech IPO: SS&C Technologies

| About: SS&C Technologies (SSNC)

SS&C Technologies (NASDAQ:SSNC), a software products and services provider priced its IPO yesterday at $15 per share for 10.7 million shares, at the top of the range.

Business Overview (from prospectus)

We are a leading provider of mission-critical, sophisticated software products and software-enabled services that allow financial services providers to automate complex business processes and effectively manage their information processing requirements. Our portfolio of software products and rapidly deployable software-enabled services allows our clients to automate and integrate front-office functions such as trading and modeling, middle-office functions such as portfolio management and reporting, and back-office functions such as accounting, performance measurement, reconciliation, reporting, processing and clearing. Our solutions enable our clients to focus on core operations, better monitor and manage investment performance and risk, improve operating efficiency and reduce operating costs. We provide our solutions globally to more than 4,500 clients, principally within the institutional asset management, alternative investment management and financial institutions vertical markets.

Offering: 10.7 million shares at $15 per share. Net proceeds of up to $71.75 million from the offering will be used for debt retirement.

Lead Underwriters: J.P. Morgan (NYSE:JPM), Credit Suisse (NYSE:CS)

Financial Highlights:

Net revenues were $270.9 million for 2009 as compared to $280.0 million in 2008... The gross margin remained 49% both in 2008 and 2009...Total operating expenses were $66.1 million in 2009 as compared to $72.5 million in 2008... Research and development expenses were $26.5 million and $26.8 million in 2009 and 2008 respectively... Net income increased to $19.1 million in 2009 as compared to $18.8 million in 2008...


The market for financial services software and services is competitive, rapidly evolving and highly sensitive to new product introductions and marketing efforts by industry participants, although high conversion costs can create barriers to adoption of new products or technologies. The market is fragmented and served by both large-scale players with broad offerings as well as firms that target only local markets or specific types of clients.

In our alternative investments market, we compete with CITCO Group, State Street Bank and Citi Alternative Investment Services. Other competitors include Eagle Investment Systems, SunGard, Fidessa and Cinnober.

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