SS&C withdraws proposal for Link Group (ASX:LNK)

• SS&C Technology Holdings has withdrawn its proposal to acquire Link Group (LNK)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NASDAQ-listed SS&C Technology Holdings has withdrawn its proposal to acquire IT service management company Link Group (LNK).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.