SS&C Technologies’ (tkr: SSNC) preliminary approach about a potential offer for U.K.-based RPA (“Robotic Process Automation”), firm Blue Prism is detailed below.
- Read Blue Prism’s deal press release HERE.
- SS&C’s proposal values Blue Prism at approximately $1.6 billion.
- Blue Prism generated recurring revenue of approximately 154 million GBP in FY’20. Read Blue Prism’s 1H 2021 investor deck HERE.
- Vista Equity is a competing acquirer per Bloomberg HERE.
- We prefer strategic acquirers such as SS&C to PE firms. Strategic acquirers may often leverage existing product portfolios and infrastructure to drive an acquired company’s Revenue and EBITDA in a manner that PE firms may not. SS&C currently leverages RPA capability across its broader Intelligent Automation offerings.
- We mentioned Blue Prism in an earlier RPA piece that included SS&C among other firms HERE.
- RPA firm UiPath (tkr: PATH) is currently valued at approximately $28 billion. RPA firm Automation Anywhere likely has a valuation approaching $20 billion (AA was valued at approximately $7 billion in 2019). Thus, SS&C is maintaining its M&A purchase price discipline.
- Read about Blue Prism’s partner network (which we expect SS&C will be able to further leverage) HERE.
- Our April article: A Cheaper Way To Play RPA