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About Newkirk Products, Inc.

SS&C Technologies helps its clients buy low and sell high and do some of it automatically. The company develops software for managing financial portfolios, alternative investments (such as hedge funds), loans, real estate equity, back-office processing, and securities trading, and it provides consulting and outsourcing services. Its applications automate several financial functions. SS&C serves asset managers, insurance companies, banks, corporate treasuries, hedge funds, and government agencies among others. Clients have included Boston Financial Management, Certified Advisory Corp., Essex Financial. It has offices around the world. SS&C added significant heft in 2018 when it bought DST Systems for about $5.4 billion.

Operations

About two-thirds of SS&C's revenue comes from its software-enabled services with about 30% from maintenance fees and term licenses. The rest of revenue is split between professional services and perpetual licenses.

Geographic Reach

SS&C Technologies has about 30 offices across the US. It has international offices in Australia, Canada, the Cayman Islands, Hong Kong, India, Ireland, Malaysia, Singapore, the Netherlands, and the UK. SS&C’s biggest market is the US, which accounts for nearly 75% of sales. Other revenue is from the UK, Europe, and Asia/Pacific and Japan.

Sales and Marketing

SS&C Technologies counts a diverse customer base of 13,000 clients in the financial services industry. It uses a direct sales force to serve the complexity of the industry and meet the industry's regulatory and reporting requirements. For its property management software, however, the company uses a telemarketing staff.

Financial Performance

SS&C’s revenue rose at an annual clip of 27% since 2013 as acquisition have helped stoke the top line. Revenue increased 13% to about $1.6 billion in 2017 from 2016, boosted by sales from the acquisitions of CommonWealth Fund Services in late 2017 and GFS, Conifer, and Citigroup AIS in 2016. The acquired companies helped increase revenue from hedge funds and other alternative investment clients.

Net income jumped 150% to about $329 million in 2017 from 2016 on higher revenue, a slight decrease in operating expenses, and a tax benefit.

The company’s cash and cash equivalents fell to about $64 million in 2017 from about $118 million in 2016. The decrease was due to repayments of debt, payment of dividends, capital expenditures, and cash paid for acquisitions.

Strategy

Acquisitions play a key role in SS&C’s growth. Using what the company calls a methodically opportunistic strategy, it has bought about 50 companies since 1995 that expanded its product and service offerings, took it into new markets, and added to its client base within the financial services industry. The company's appetite for acquisitions remains undiminished as it made one of its biggest deals for rival DST Systems. The $5.4 billion transaction added substantial revenue and expanded SS&C's offerings.

Several deals in 2016 and 2017 expanded SS&C’s presence in the hedge fund market just as the hedge fund industry bounced back from slow growth, which helped boost the company’s revenue. Another slowdown in hedge fund growth, or in the greater economy, could reverberate to SS&C and reduce the rate of growth.

Looking to expand international revenue beyond a fifth of sales, SS&C seeks to leverage its software products and software-enabled services for foreign markets. It also intends to use its current presence in the Asia/Pacific region to as a base for expansion there.

SS&C increased the products and services for fund administration, which helps it draw more revenue from clients. A new offering called Fundhub is aimed at the middle office market.

Mergers and Acquisitions

In 2017 SS&C bought DST Systems for about $5.4 billion. The transaction significantly increased SS&C's scale, boosting its revenue to from $1.6 billion to a combined $3.9 billion. The deal put SS&C in the US retirement and wealth management markets while adding more than 110 million investor positions across DST's client base. DST became a wholly owned SS&C subsidiary. Previously, SS&C bought DST subsidiary, DST Global Solutions.

In another 2018 acquisition, SS&C bought Intralinks, which develops a communications platform for private equity and hedge fund investors, for $1.5 billion. Intralinks provides SS&C with a communications technology that facilitates collaboration between investors. Intralinks has more than 4,000 clients including banks and corporations.

Also in 2018 SS&C acquired CACEIS North America, the fund administration business of CACEIS based in Toronto and New York. CACEIS offers fund administration services and support. SS&C bought CACEIS North America from CACEIS, the asset servicing banking group of Crédit Agricole. 

In 2016 and 2017 SS&C made several acquisitions that increased its hedge fund client base. The company added CommonWealth Fund Services and Conifer Financial Services in 2017, following its 2016 deals for Wells Fargo's Global Funds Service and Citigroup's Alternative Investor Service. The total cost was about $490 million.

Newkirk Products, Inc.

15 CORPORATE CIR
Albany, NY 12203-5177
Phone: 1 (518) 862-3200

Stats

Employer Type: Privately Owned
Employees (This Location): 240
Employees (All Locations): 270

Major Office Locations

Albany, NY