DST Systems, Inc. Announces Agreement To Acquire ALPS Holdings, Inc.

DST Systems, Inc. announced that it has signed a definitive agreement to acquire ALPS Holdings, Inc. (ALPS) through a merger with a wholly owned subsidiary. At closing, DST will pay $250 million funded from cash and existing credit facilities. The transaction, subject to regulatory approval and certain conditions, is expected to close in fourth quarter 2011. The transaction, subject to regulatory approval and certain conditions, is expected to close in fourth quarter 2011. On a pro-forma basis, the transaction is expected to be accretive. DST plans to operate ALPS as a stand-alone entity. DST expects to realize $5 million of annualized synergies in the first 24 months through rationalization of technology and service infrastructures. Prior to the realization of synergies and costs associated with rationalization, DST estimates that the transaction will break even in fourth quarter 2011 and estimates a contribution on a GAAP basis of approximately $.06 per share during 2012. Excluding non-cash charges and costs associated with rationalization, the transaction is expected to deliver $.26 per share during 2012. Upon completion of the transaction, ALPS's financial results will be consolidated with those of DST, and will be reported as part of DST's Financial Services Segment.