SS&C Technologies has lifted its bid for software provider GBST, trumping an earlier proposal from FNZ.
The latest $3.60 per share bid comes as part of a three-way battle for the company and the latest bid values the business at $245 million. It has been backed by the target’s board.
GBST, advised by Deutsche Bank, provides software for retail wealth management organisations.
With three separate suitors, GBST is understood to have held an auction over the weekend.
FNZ put forward an offer of $3.15 per share and SS&C lobbed a bid of $3.25 per share after Bravura Solutions had lobbed a bid of $3 per share for the business.
The board recommended the SS&C Technologies bid, but then FNZ this week trumped that offer with a bid of $3.50 per share.
SS&C Technologies, which is working with law firm Gilbert + Tobin, but has not hired an investment bank, has been granted exclusive due diligence.
“Having carefully assessed the merits of both proposals, the board remains of the view that it is in the best interests of GBST and its shareholders to facilitate a binding offer from SS&C reflecting the terms of its revised proposal and which is capable of being presented to shareholders,” chairman Allan Brackin said
The latest offer is an 82.3 per cent premium to the undisturbed closing price of GBST shares on April 11, before Bravura Solutions launched a bid for the company.
Bravura had been vying for GBST since April, twice sweetening its initial offer of $2.50 a share, first to $2.75, then to $3, subject to exclusive due diligence.
But while Bravura this week said its offer to acquire GBST was now off, it reserved its right to return to the negotiating table.
The UBS-advised FNZ was founded in New Zealand but is now based in Edinburgh. It was last year worth £2 billion. It describes itself as a company that offers wealth management services, partnering with major financial institutions and is backed by pension fund CDPQ and Generation Investment Management.
SS&C said its bid was subject to due diligence.
Some questioned whether a similar situation to Vocus might unfold, where the suitor walked away from the target after closely examining operations.
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