FMC unites behind US$160 million SS&C offer

FMC unites behind US$160 million SS&C offer

The board of Financial Models Company has terminated an acquisition agreement with Linedata Services in favour of a more lucrative US$160 million bid from SS&C Technologies.

SS&C Technologies says it has entered into definitive lock-up agreements with shareholders representing 91.8% of FMC equity for an offer of C$17.70 in cash.

The agreement was reached after Linedata Services failed to submit a counter-proposal to its earlier C$14.76 a share offer. The French financial technology firm is entitled to a C$6 million break-fee from FMC as a result of the termination.

Linedata says it will continue to pursue international teckover targets with sales in excess of EUR20 million and which operate chiefly as ASPs. The firm says it will resume negotiations with potential partners already begun in 2004.

The winning bid from SS&C unites the warring factions on the FMC board, achieving consensus among William Waters, BNY Capital, Stamos Katotakis, Triax Growth Fund, and Van Berkom and Associates. Katotakis had previously engaged in a legal battle with Linedata to force Waters and BNY Capital to sell their shares to him under a pre-existing shareholder's agreement.

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