Carlyle-backed software company withdraws $200m IPO

SS&C Technologies, which develops financial management software for hedge funds and institutional investors, filed for a NASDAQ float last year. Carlyle acquired the company in a $941m take-private in 2005.

SS&C Technologies, a financial services software provider majority owned by private equity giant The Carlyle Group, has withdrawn its planned $200 million public float.

The Connecticut-based company, which provides a variety of software suites for hedge funds and institutional investors, originally registered for the initial public offering in June of last year, but nixed its listing yesterday, according to filings with the Securities and Exchange Commission.

Carlyle acquired a majority stake in SS&C in 2005 in a $941 million take-private, partnering with management to delist the company from the NASDAQ stock exchange. Carlyle paid a 15.7 percent premium over SS&C’s average closing price the month the deal was agreed.

Carlyle capitalised SS&C with roughly $381 million in equity in the buyout, while SS&C chief executive William Stone contributed $165 million. SS&C also entered into two senior secured credit facilities in conjunction with the deal, including a $75 million revolving credit facility and a $275 million term loan B facility, which was fully drawn at closing, according to SEC filings.
SS&C also issued and sold $205 million in aggregate principal amount of 11 3/4  percent senior subordinate notes due 2013.

Since the 2005 acquisition, Carlyle has guided SS&C through the 2007 acquisition of Northport, a New Jersey-based fund administration software developer, and the July acquisition of Micro Design Services, a New Jersey-based mobile computing and messaging expertise. SS&C purchased Micro Design for $17 million in cash, as well as the assumption of undisclosed liabilities.  

Carlyle managing directors Allan Holt, Todd Newman and Claudius Watts all served on SS&C’s board of directors as of April, the date of the most recent SEC filing.

Carlyle, the largest private equity firm in the world according to the PEI 50, owns a 72 percent stake in SS&C.