DST to Acquire Remaining Interest in Joint
Ventures, BFDS and IFDS U.K., from State Street
State Stroat and DST to Continue IFDS Transfer Agency Joint Venture in Canad,
Iralong, and Luxembourg
News ROMDED BY
DST Systems.ine—e
Mar 27201, 0986 ET
KANSAS CITY, Mo. and BOSTON, March 27,2017 PRNewswire! -DST Systems, Inc (NYSE: DSN, a leading global strategie advisory. technology, and
‘operations outsoureng company, and State Stree! Corporstion (NYSE: STD), today announced definitive agreements fer DSTte acquire State Sreet’
‘ownership interes inthe Boston Financial Data Services, nc. (BFDS") int verture anc the international Financial Data Services Limited (1FDS U.K joint
‘venture inthe UK. BFS provides innevetive shareholder recordkeeping, ntermediay and investor services, ord regulatery compliance solutions tofranctal
‘Services cents inthe United States. FDS UK. fs an imestor and policy holder administrative senices and technclogy provider tothe collective funds,
insurance and retiementindustries. Following completion of hese acquisitors, OST wil own 100% of the equity interests ia both BFDS and IFDS UK. DST
ard State Steet illcontinue to service offshore and coss-Lorde: markets in Canada, reand and Luxembourg trough the 50150 joint venture ntenational
Fhanchl Dai Services, LP.CIFDS LP", The IFDSU.K.acqusition has closed and the BFDS acqussion fs expected to close within the next several days.
‘Weare pleased to become the sole owner of BEDS and FDS UK." sad Steve Hooley, Charman,CEO and President of DST. "These businesses have abvays
been swategicaly inportentte DST and we are confident that we con rive sigifzont enhancements te the clentexperience and improve execution ef key
Inatves, while unlocking meaninaful synergies and enhancing value to DST and is shareholders
Ss
STATE STREET
(PRNensFatoDST Systems ne)
Hooley added, "We are also excited abou! our continuing jolt venture relationship with Slate Steet through IFDS LP. to jonlly operate the Canad, Kelan
‘ard Luxeribourg entities. We believe the bint venture structure in these counties provides he competitive advartage ofa bestn-markel integrated solution
requited for offshore and cross-border markets”
Mike Rogers, President of State Steet said, This decison involves an ownership change, nota servcelevelchange fer our clients. We wil continue towork
wth DST as offers transleragency services for eur lists glbaly. This decision wil also alow Us to continue to fecus en eur core competencies and futher
invest in eras where we can expand marke! shar or ede produc and service capabilties for our cents?Inthe US, DST whotlyowned supsisiay wil acquire State Streets ownership interest n BFDS by delivery to Sate street of approximatey 2.0 mien shares
of Site Street common stock owned by DST for total consideration of $157.6 millon in a ron-taxable exchange under Section 355 ofthe internal Revenue
‘Code, BFDS ts expected o contibute aparaximately $220 millon of Icremental @peratng revenue and $29 milon of pemtng income to DST over the
next wole months bolere synergies, eckucturng costs and amartzaton ofthe intangibles reciting fram the acquisition. DST expects to achiove
_approxmately $20 milion of cost savings Im the realzation cf synergies withn the fest 1B ments and expects the transaction to be accretive to dluled
‘oamingt por share ty $015 10 $019 inthe next tiolve menths bolor synorgos, restructuring costs and amatization of rtangibes
Inthe UX, OSTS wholl-cwned subsidiary wll acquire the ownership interest In FDS UK. fer total cash consideraien of $175 millon, The acqustton walle
funded through cash on hand and DSTS exiting debt facities. DST expects the consolidated IFDS UK. businesses to cantibute approximately $440 milion
‘of incremental annual operaing revenues upon acquistien ane $20 mulon of operating Income before synerges, restuctuthg costs andamortation of
invanoibles ever the ned twelve months, DST expects the IFDS UK. transaction fo be accretive to diluted estnings nershare by $0°8 to $022 inthe next
‘twelve montns before synergies, structuring costs and amortization cf intangbles.
‘About DST
DST Systems, Inc (NYSE: DST) Is. lewing provide: of specalzed tecinology, stategc advisory and business cpetations outsourcing tothe financial and
heatheare industries. DST enables cients to transform complesity nto strategie advantage by helping them continual say ahead ef and capitalize on ever
“changing customer, business and regubltary requirements inthe Wolds most Cemanding Industries. For move information, vst the DST website
atwnnidstsystems.com.
‘Anout Sate Steet
‘State Stret Corporation (NYSE ST) is one of the worl!'s leading provders of nancial services to Insttutional investos, inducing investnent servicing,
Investment management and investment research and traning. Wih $29 villon Inasseis under custody and acminstration ane $2.47 tllon” In assets under
‘management as of December 3, 2016, State Sreet operates in more than 100 geographic markets workiwide. including the US. Caraa, Europe. the Midsle
Eastand Asia, For more formation, vist Stte Steers website at vruwstatestieetcom
* Assets under management for Siate Street Global Advisors (SSGA} were $2.47 tillon as of December 31, 2016. AUM reflects approximately $3062 bllon fs
‘of December 31,2005) with respect to which State Steet Giebal Marke's, LLC (SSGM serves as marketng agent; SSGM and SSGA ae alae.
Investor Contacts:
John Riley
DST Chief Marketing Officer, Communications and Investor Relations
1-816-425-1000
‘Anthony Oster
‘Ste Steet Senicr Vice President and Hens of Investor Relations
1-617-664.2477
Media Contacts:
Laura M. Parsons
DST Global Public Relations
-016-212.9087
medarelationsadstaysters.com
CCaralyn Gichon
‘Slate Street Corporation
1-617-664-8672
cichonstatestrectccm
‘Safe Harbor Statement
Contain material procortod in the press oleste incuosforward.iseing saiomens inkonded to qualify fr the ale haber fom lablty extablched by the
Private Securities Litgation Reform Act of 1995, These forwardooking statements include, butare not limited to, (al staements, oer than statements of
historical ac, ineludadin ths prose lease thet addioss aetvites, events oF developments thet we expect of anticipate willer may eecuin the future or that
‘depend on fature events, or i) statements about ou future business pans andstategy andother statements hat describe the Company's outook,
‘objectives, plane, intantions or goule and any diecustion of future operating erfinancial porformanee. Whenever used, words such ab *mey? wil? Would?“shoule? “potential” “svategy’ “artctpates; “estimates; “expects; “projet “preciet “intends; “plans “believes; “targets” and other tes of smi
‘meaning are intended 10 identi such forwardocking statements. Forwardocking statements are uncertain andtoseme extent unoredicable, and invove
krown an unknown sks, uncenaines anc other inportan factors that could cause actualresuls to dfer matenaly fom those exoressed or implisa ior
renconably inferred from, euch forward osking statements. Factors that could cause recut to difler materaly rom those anticipated include, bul are not
limitedto, he rsktactors and cautionay statements included inthe Compary/s period anc currentreparts (Forms 10K, 10-0 and &) fledfromtine to ime.
With the Securitos and Exchange Commission. Al euch factors should be consilered in evaluating any fonwarddacking etatements. The Company undertakes
‘no cbligaion to update any fonvardooking statements in this press release torellect new information, future events or chenwise.
Non-GAAP Financial Measures
This press release contains anda! Information calculated other hen in accordance wih US. Generaly Accepted Accounthg Prnciples (GAAP) andmay
fer from the methods used by cher companies. Such nor-GAAP financial measures include operating income and dilted earnings per share excluding
potential uure savings from synergies restucurng costs aGamortzaton ofinunglbies. Management believes the exclusion ef these tems from the
‘computation of operatingincome and cuted earings per stare previde mearineful supplemental infermation regarding future perfomance following the
‘consummation ofthe tansactions. Thesemeasutes are used by DST management lo evaluate our operations and are regulary presented t DST
‘stoctholders inconnestion with the issuance of quartedy earings results. The Company has not reconciled non-GAAP operating income and diluted
‘earnings per share tothe relevant GAAP measure becouse f has not yet alized the restucturing plans and have not completes the purchase accounting for
the acquisitions and therefore are unable to forecast these ils.