SS&C to acquire the activities and assets of the O’Shares ETFs

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SS&C Technologies Holdings announced on Tuesday that it has entered into a definitive agreement to acquire the businesses and assets related to the O’Shares ETFs.

The purchase price was not disclosed, SS&C, a global provider of services and software to the financial services and healthcare industries, said in a press release. The strategic deal with O’Shares ETFs will expand the offering of SS&C ALPS Advisors, SS&C’s wholly owned asset manager, the statement said.

Under the ownership of SS&C, based in Windsor, Connecticut, the O’Shares ETFs will remain focused on wealth preservation, income and capital appreciation while leveraging the distribution capabilities of SS&C ALPS Advisors, according to the communicated.

“O’Shares has built a strong ETF presence focused on a focused line of high quality dividend products such as (O’Shares US Quality Dividend ETF),” said Todd Rosenbluth, Head of ETF Research and mutual funds at CFRA, after the deal was announced. “However, it will enjoy the scale and distribution advantages of being part of a larger asset manager in the highly competitive ETF market.”

Denver-based SS&C ALPS Advisors managed $ 18.2 billion as of September 30, according to the SS&C statement. O’Shares’ company-wide assets under management totaled $ 1.5 billion, an SS&C spokesperson said.

In a separate press release Tuesday, Boston-based O’Shares said the ETFs it manages will be reorganized into newly created ETFs formed by SS&C ALPS, subject to the approval of OSI’s boards of directors. ETF Trust and ALPS ETF Trust as well as shareholder approval of the O’Shares ETFs at a shareholders’ meeting to be announced.

O’Shares Investment Advisers, which is not part of the planned acquisition, will provide SS&C ALPS Advisors with the continued use of current ETF indices under license agreements and provide ongoing marketing support for the ETFs.

“The transaction with SS&C ALPS offers significant scale and improved distribution,” said Kevin O’Leary, president of O’Leary, in the statement. “We will continue to work with their management and sales teams to support fund growth in all markets across the country.”

Mr. O’Leary is known for his appearance on ABC’s Shark Tank.


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