Advent Software Inc. Overview

Advent Software Inc.

Introduction

Advent is a company that delivers financial technology solutions and services to financial service clients in the asset management and alternative investment space around the globe.

For automating and integrating data and work flows within the investment management organization as well as between the investment management organization and outside parties, Advent Software, Inc. offers software products and services on a global scale. It creates, markets, and sells software items, hosting services for software-as-a-service, data interfaces, and associated upkeep and support services that automate, integrate, and support various mission-critical operations of investment management companies. According to the company, its clients manage about $18 trillion in assets across 60 different nations. Additionally, the business provides expert services like consulting, project management, implementation and integration, writing unique reports, training, and data conversion services. It assists asset managers, wealth managers, prime brokers, fund administrators, hedge funds, family offices, broker dealers, foundations, pension funds, endowments, and funds of funds, as well as registered investment advisors and registered investment advisors.

Key and Significant Facts.

Founding year: this company was founded in 1983.

Industrial ranking: According to water ranking 2022 SS&C Advent is the best accounting system provider. On the list of the 86 Best Technology Companies to Work For in California, Advent Software is ranked at number 86.

Company type: A subsidiary of SS&C Technologies.

Trading type: this company is traded in the NASDAQ stock market as SSNC. 

Workforce strength: Advent software has a total work force strength of  1209 employees.

Company’s website: https://advent.com

Historical Background.

Steve Strand and Stephanie DiMarco founded the company Advent Software (now known as SS&C Advent) in 1983. Peter Hess succeeded DiMarco as president and CEO in June 2012 after she had resigned from her position.

1983

Advent Software’s AXYS product became the de facto standard and was adored by investment managers for its straightforward user interface and wide range of report options. Advent Software’s AXYS product was one of the first PC-based portfolio accounting applications, created in 1983, targeting smaller investment managers who couldn’t afford a system like Security APL. The reports weren’t simple to customize or maintain, though.

1992

The company launched the first windows based portfolio and accounting report solution which was named Axys.

Advent Axys brings businesses the advantages of automation in a simple, turnkey solution for portfolio reporting and accounting. The amazing thing about it is how little IT support is needed. This software helps you get a clearer picture of your portfolios’ performance while also increasing productivity and accuracy. Axys assists over a thousand firms in completing more work in less time thanks to its extensive library of predefined reports and simple report customization.

Going public (November 24 1995)

On the 24th of November 1995 the company went public trading as ADVS on the NASDAQ stock exchange market.

Geneva project (1997)

Advent released Geneva. Geneva is a global portfolio management platform.

Geneva provides businesses with instant, real-time performance, P&L, position, and exposure information in a market where prompt, informed decisions are essential. Firms use the solution as it delivers comprehensive instrument coverage, from global equities and fixed income to derivatives and bank debt. The software is a leading portfolio management solution for the alternative world and supports even the most intricate global strategies.

A single, highly scalable platform called Geneva is used to provide services to clients who have ever-increasing needs for real-time data and seamless system integration.

Change in power structure

Stephanie DiMarco, founder and CEO of the international provider of investment management software and services, announced her resignation from her position at Advent Software effective at the end of June. As of June 30, 2012, the board of directors has named Peter Hess, currently serving as president of Advent, to take DiMarco’s place as CEO.

In addition to continuing to serve the company as a director on the Advent Board, DiMarco was to transition into a senior management advisory position.

Chairman of Advent John H. Scully commented on DiMarco’s leadership and track record, saying, “Stephanie DiMarco’s legacy at Advent and contributions to the investment management industry are extraordinary. Under Stephanie’s leadership, Advent has evolved from a one-product company to a global industry leader with a strong and predictable business model. The Board would like to express its deep appreciation to Stephanie for her visionary leadership and unique contributions to the company.

Scully gave the following justification for Hess’ selection as the company’s new CEO: “Pete has played an instrumental role in Advent’s success leading several of Advent’s largest business groups prior to his very successful tenure as the company’s president since December 2008,” she said.

Acquirements.

Acquirement of Tamale software.

In 2009 Advent purchased Tamale Software. Tamale’s RMS technology creates a centralized information hub to manage and access research data, including analysis, email, and sell-side research. Over 1700 investment professionals from hedge funds, endowments, funds of funds, private equity firms, and conventional asset management companies use the system. Advent acquired this company for 28 million in cash and in stock. The CEO at the time said the reason for the acquisition was “Tamale RMS completes Advent’s product offerings, and the integrated solution will link analyst recommendations to investment performance by bridging research management and portfolio management to increase efficiency”. She further elaborated her statement as she also added that “As we expand Advent’s front office footprint with this potent, revolutionary productivity tool for our clients’ investment teams, Tamale Software brings “a track record of success.”

Purchase of Black Diamond

Advent Software, a provider of wealth management software, announced on May 11th, 2011, that it would buy rival Black Diamond Performance Reporting for $73 million in an effort to strengthen its position in the competitive landscape for portfolio management software.

According to some, Advent feared it would lose market share to Black Diamond as businesses shifted away from Advent’s Axys and toward Black Diamond’s web-based offering. The two businesses were scheduled to discuss this agreement the following day, on Thursday, May 12, 2011.

The deal was completed during the third quarter of that year.

Advent gets Acquired by SS&C technology Holdings INC. 

The 2nd of February 2015 saw the announcement that SS&C Technologies Holdings, Inc. (“SS&C”), a major global provider of financial services software and software-enabled services, and Advent Software, Inc. (“Advent”), a major provider of software and services for the global investment management industry, had entered into a binding agreement under which SS&C would acquire Advent. According to the terms of the contract, SS&C will buy Advent for an enterprise value of about $2.7 billion in cash, which works out to $44.25 per share plus debt assumption. The deal was completed on the 8th of july 2015

Controversies

Feb. 2015 – Advent Software, Inc. (NASDAQ:ADVS) Investor Filed a Lawsuit Over Alleged Wrongdoing In Acquisition:

A shareholder of Advent Software, Inc. filed a lawsuit to block SS&C Technologies Holdings, Inc.’s plan to acquire the company for $44.25 per share. The plaintiff claims that by agreeing to sell Advent Software, Inc. to SS&C Technologies Holdings for a low price through an unfair process, the defendants violated their fiduciary obligations to the holders of NASDAQ:ADVS stock.

Brodsky & Smith, LLC Announces Investigation of The Board of Directors of Advent Software Inc.

The law firm of Brodsky & Smith, LLC announces that it is looking into claims that the Board of Directors of Advent Software, Inc. may have made in relation to the sale of the company to SS&C Technologies Holdings, Inc. for possible breaches of fiduciary duty and other violations of state law.

Key Financials

Revenue: IncreaseUS$387 million FY 2014

Operating income: Increase$28.2 million FY 2009

Net income: Increase$50.2 million FY 2014

Total assets: Increase$454 million FY 2009

Total equity: Increase$252 million FY 2009

Conclusion

The company had a good run in time until it got acquired by SS&C Technology. As the first company to start a PC based portfolio accounting application, they can be said to have lifetime experience on portfolio account management.