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SS&C Technologies (SSNC) Completes Buyout of CFO Fund Services

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SS&C Technologies Holdings (SSNC - Free Report) announced that it has completed the acquisition of Colorado-based fund administration firm - Complete Financial Ops (CFO) Fund Services - in an all-cash deal. The transaction details have not been revealed.

CFO Fund Services provides customized fund administration services to private equity funds and family offices. The acquisition will assist SS&C in offering services to venture capital and family office funds.

The acquisition will enable SS&C to expand its position as a fund administrator by adding 25 clients and eight employees.

SS&C continues to develop its hedge fund, private markets, middle-office and insurance servicing capabilities with more than $2 trillion in alternative assets under management.

The service provided to CFO clients will be supported by SS&C's breadth, scope and all-inclusive solutions for the alternative management sector.

SS&C provides investment and financial management software and related services primarily to the financial services industry. It delivers mission-critical processing for information management, analysis, trading, accounting, reporting and compliance.

The company expects fourth-quarter revenues to be in the range of $1.305-$1.355 billion. The Zacks Consensus Estimate is pegged at $1.33 billion. Earnings per share are expected to be in the range of $1.12–$1.20. The consensus estimate stands at $1.16 per share.

The company reported third-quarter earnings of $1.15 per share, missing the Zacks Consensus Estimate of $1.17. This compares to earnings of $1.32 per share a year ago.

Adjusted revenues in the quarter were $1.32 billion, missing the Zacks Consensus Estimate by 1.85%. This compares to year-ago revenues of $1.27 billion. The performance was boosted by continued momentum across Advent, I&IM, Private Markets and Retirement solutions.

In the third quarter, the company completed the acquisition of Tier1’s CRM business to expand its footprint in capital markets and investment banking.

However, it struggles with volatile macroeconomic conditions, unfavorable exchange rates and rising interest rates.

SS&C currently carries a Zacks Rank #4 (Sell). Shares have lost 31.7% compared with the sub-industry’s decline of 24.5% in the past year.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Arista Networks (ANET - Free Report) , Plexus (PLXS - Free Report) and Super Micro Computer (SMCI - Free Report) , each presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.37 per share, up 8.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.

Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have jumped 9.2% in the past year.

The Zacks Consensus Estimate for Plexus 2023 earnings is pegged at $5.98 per share, rising 8.9% in the past 60 days.

Plexus’ earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 17.5%. Shares of PLXS have gained 16.7% in the past year.

The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.58 per share, rising 27.7% in the past 60 days.

Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all of the last four quarters, the average being 9.4%. Shares of SMCI have soared 95.1% in the past year.

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