- SS&C Technology Holdings has withdrawn its proposal to acquire Link Group (LNK)
- The NASDAQ-listed company made the conditional, non-binding, indicative proposal to acquire all shares in Link Group in early December
- The proposal offered $5.65 per LNK share and after reviewing it, the Link Group Board concluded the proposal did not offer compelling value
- The board will continue to consider various changes to the company’s structure in a bid to simplify the business such as demerging its interest in Torrens Group Holdings
- Shares have dropped 12.6 per cent and been trading at $4.85
NASDAQ-listed SS&C Technology Holdings has withdrawn its proposal to acquire IT service management company Link Group (LNK).
The global provider of investment and financial software and services made the conditional, non-binding indicative proposal to acquire all shares in Link Group in early December.
The proposal offered $5.65 per LNK share and was subject to a set of conditions including obtaining unanimous support for the Link Group Board. News of the proposal seemed to prompt a jump in the company’s share price from $4.96 on December 7 to $5.64 on December 8, 2020.
However, after reviewing the proposal, the board concluded it “did not offer compelling value” but did decide to provide further due diligence information on a non-exclusive basis.
The proposal from SS&C followed a revised proposal from private equity firms Carlyle Group and Pacific Equity Partners of $5.40 per share which was also considered not to offer compelling value.
Link Group will continue to explore what it describes as structural alternatives for its portfolio including a potential separation of its interest in Torrens Group Holdings.
This is in addition to the proposed demerger of Link Group’s 44.2 per cent interest in PEXA, a full-service Electronic Lodgement Network Operator, into a separately listed company.
Shares have dropped 12.6 per cent and been trading at $4.85 at 11:16 am AEDT.