DST Systems

DST Systems, Inc. was an American business-services and technology company headquartered in Kansas City, Missouri. Its origins date to February 1969, when it was established as Data·Sys·Tance, a subsidiary of Kansas City Southern Industries. The company developed from a technology operation into a large provider of information-processing, software, administrative, and outsourcing services for institutional clients, particularly in financial services and healthcare. The company’s financial-services activities supported organizations such as mutual-fund companies, asset managers, retirement and investment businesses, and other firms requiring large-scale recordkeeping and transaction processing. Its role was primarily business-to-business rather than consumer-facing: DST supplied infrastructure, software, data management, administrative operations, and related expertise that clients could use to run investor, account, and back-office processes. Its healthcare activities included technology and operational services for health plans and related organizations, broadening the company beyond investment administration. DST expanded through acquisitions and partnerships. In 2005 and 2006 it acquired CSC’s Health Plan Solutions group and Amisys Synertech, adding healthcare administration and technology capabilities. In 2016 it completed the purchase of Kaufman Rossin Fund Services, an alternative-fund services provider. In 2017 it announced an agreement to acquire State Street Corporation’s remaining interests in Boston Financial Data Services and International Financial Data Services Limited’s United Kingdom business, strengthening its position in financial-services technology and operations. DST remained a publicly traded company before its acquisition. In January 2018, SS&C Technologies Holdings announced an agreement to purchase all outstanding DST shares for $84 per share in cash. The transaction valued the enterprise at approximately $5.4 billion, including assumed debt. Following completion of the acquisition in 2018, DST ceased to operate as an independent public company and became part of SS&C Technologies. At the time, the business had a substantial international workforce; the cited reference reports 13,420 employees worldwide in 2016. Its historical brand and operating capabilities were consequently incorporated into SS&C’s broader technology and outsourcing portfolio.

DST Systems began in February 1969 as Data·Sys·Tance, a subsidiary of Kansas City Southern Industries. It was created during a period when large organizations were increasingly adopting computerized information processing, and its early corporate setting connected it to the broader transportation and industrial interests of Kansas City Southern Industries. Over time, DST developed into a specialized technology and services company serving institutional clients. Its principal areas were financial services and healthcare. In financial services, the company provided processing, recordkeeping, administrative operations, technology, and advisory support for businesses that needed to manage large volumes of accounts, transactions, and investor information. In healthcare, it supplied technology and operational capabilities for health-plan and related administrative functions. These services positioned DST as an infrastructure and outsourcing provider rather than a consumer brand. The company expanded its healthcare capabilities through acquisitions. In 2005 and 2006, DST acquired CSC’s Health Plan Solutions group and Amisys Synertech, Inc. These transactions added healthcare-focused technology and services to its portfolio and reinforced the importance of healthcare alongside financial services in DST’s business scope. DST also broadened its investment and fund-services operations. On February 24, 2016, it completed the acquisition of Kaufman Rossin Fund Services, known as KRFS, an alternative-fund service provider. The deal gave DST additional capabilities in the administration and operational support of alternative investment funds. On March 27, 2017, DST announced plans to acquire State Street Corporation’s remaining interests in Boston Financial Data Services, Inc. and International Financial Data Services Limited’s United Kingdom business. The proposed transaction represented a further expansion of DST’s ownership and operating reach in financial-services technology and administration. During the same year, DST reported a $300 million share-repurchase program. DST’s independent corporate history ended with its acquisition by SS&C Technologies Holdings. On January 11, 2018, SS&C announced that it would acquire all outstanding DST stock for $84 per share in cash. The transaction had an enterprise value of approximately $5.4 billion, including the assumption of debt. The acquisition was completed in 2018, after which DST no longer operated as an independent publicly traded company and became part of SS&C Technologies. A reference for the company reports that DST employed 13,420 people worldwide in 2016, illustrating the scale it had reached before the transaction.

• 2018

  Acquired by SS&C Technologies

  [1]DST Systemsen.wikipedia.org

  SS&C Technologies announced and completed the acquisition of DST Systems for $84 per share in cash, with an enterprise value of approximately $5.4 billion including assumed debt.

• 2017

  Expansion of ownership in BFDS and IFDS U.K.

  [1]DST Systemsen.wikipedia.org

  DST announced an agreement to acquire State Street Corporation’s remaining interests in Boston Financial Data Services and IFDS U.K.

• 2016

  Kaufman Rossin Fund Services acquisition completed

  [1]DST Systemsen.wikipedia.org

  DST completed its acquisition of Kaufman Rossin Fund Services, an alternative-fund services provider.

• 2006

  Acquisition of Amisys Synertech

  [1]DST Systemsen.wikipedia.org

  DST acquired Amisys Synertech, adding further healthcare-related technology and services.

• 2005

  Acquisition of CSC Health Plan Solutions

  [1]DST Systemsen.wikipedia.org

  DST acquired CSC’s Health Plan Solutions group, expanding its healthcare technology and administrative-services capabilities.

• 1969

  Established as Data·Sys·Tance

  [1]DST Systemsen.wikipedia.org

  DST Systems was founded in February 1969 as Data·Sys·Tance, a subsidiary of Kansas City Southern Industries.

A business-to-business technology and operations partner for financial-services and healthcare organizations, combining software, data processing, administration, outsourcing, and advisory capabilities.

• Financial technology and operations

  Financial-services technology and processing

  DST’s core financial-services offering consisted of technology, information processing, recordkeeping, administration, and outsourced operational support for institutional financial organizations. These capabilities were designed for clients managing substantial account, investor, transaction, and reporting workloads rather than for direct consumer use.

• Healthcare administration technology

  Healthcare plan solutions

  Through its healthcare businesses and acquisitions, DST provided technology and operational services supporting health plans and related organizations. The portfolio included capabilities associated with administrative processing and information management in the healthcare sector.

• Fund administration · 2016

  Alternative fund services

  DST expanded into alternative-fund administration through its acquisition of Kaufman Rossin Fund Services in 2016. The business supported operational and administrative requirements associated with alternative investment funds.

• Financial-services outsourcing · 2017

  Boston Financial Data Services and IFDS U.K. capabilities

  DST’s planned acquisition of State Street’s remaining interests in Boston Financial Data Services and International Financial Data Services’ United Kingdom business strengthened its position in financial-services administration and technology across the United States and the United Kingdom.

• 2018

  Accept acquisition by SS&C TechnologiesM&A

  Background

  DST agreed to a transaction that would move the company from independent public ownership into SS&C Technologies.

  Action taken

  SS&C Technologies agreed to acquire all outstanding DST stock for $84 per share in cash, with an enterprise value of approximately $5.4 billion including assumed debt.

  Aftermath

  The acquisition was completed in 2018, ending DST’s existence as an independent publicly traded company.

  Acquisition consideration per share. $84 per share in cash (Announced January 11, 2018)

  Source

• 2017

  Acquire State Street’s remaining interests in BFDS and IFDS U.K.M&A

  Background

  DST continued expanding its ownership and reach in financial-services technology and operations.

  Action taken

  DST announced an agreement to acquire State Street Corporation’s remaining interests in Boston Financial Data Services and International Financial Data Services Limited’s United Kingdom business.

  Source

• 2017

  Authorize a $300 million share-repurchase programOther

  Background

  DST reported a capital-return initiative while continuing its acquisition and expansion activities.

  Action taken

  The company reported a share-repurchase program valued at $300 million.

  Share-repurchase program value. $300 million (2017)

  Source

• 2016

  Acquire Kaufman Rossin Fund ServicesM&A

  Background

  DST sought to expand its financial-services portfolio into alternative-fund administration.

  Action taken

  DST completed the acquisition of Kaufman Rossin Fund Services.

  Aftermath

  The acquisition added alternative-fund service capabilities to DST’s business portfolio.

  Source

• 2018

  SS&C Technologies announces agreement to acquire DST Systems[1]DST Systemsen.wikipedia.org

  M&A

  SS&C Technologies announced the proposed acquisition of all outstanding DST Systems shares for $84 per share in cash. The transaction was described as having an enterprise value of approximately $5.4 billion, including assumed debt.

• 2017

  DST agrees to acquire additional interests in Boston Financial Data Services and IFDS U.K.[1]DST Systemsen.wikipedia.org

  M&A

  DST announced an agreement to purchase State Street Corporation’s remaining interests in Boston Financial Data Services and International Financial Data Services Limited’s United Kingdom business.

• 2017

  DST Systems reports a $300 million share-repurchase program[1]DST Systemsen.wikipedia.org

  Other

  DST Systems reported a share-repurchase program valued at $300 million, returning capital to shareholders while the company continued its expansion in financial-services operations.

• 2016

  DST completes acquisition of Kaufman Rossin Fund Services[1]DST Systemsen.wikipedia.org

  M&A

  DST Systems completed its acquisition of Kaufman Rossin Fund Services, an alternative-fund service provider, expanding its fund-administration and alternative-investment capabilities.

1. 1DST Systemsen.wikipedia.org