Dye & Durham loads up in Australia with $3.2B takeover of Link

Dye & Durham Ltd. is buying Australia-based Link Administration Holdings Ltd. for $3.2 billion in a major expansion for the Canadian cloud-based software provider that will quintuple its annual revenue base.

Dye & Durham Ltd. is buying Australia-based Link Administration Holdings Ltd. for $3.2 billion in a major expansion for the Canadian cloud-based software provider that will quintuple its annual revenue base.

"This is a transformational acquisition for Dye & Durham and represents a major step forward in our 'Build to a Billion' strategy to achieve $1 billion of adjusted EBITDA," said Dye & Durham Chief Executive Matthew Proud in a release late Tuesday. 

"Link Group has achieved critical mass across multiple product categories in Australia and the United Kingdom – two of our key markets – and this acquisition both diversifies and strengthens our position in these geographies."

The acquisition will make Dye & Durham a significant player in Australia's pension administration sector, with Link boasting the world's fourth-largest pension pool, according to data from Towers Watson. 

In the deal announcement, Dye & Durham also touted Link's corporate markets division, which includes software that caters to shareholder management and engagement with other stakeholders. Two other divisions, Link’s funds solutions business and a banking and credit management unit, are being eyed for divestment by Dye & Durham, which also said it expects to achieve $125 million in cost savings after the deal closes. 

The transaction will significantly expand Dye & Durham's revenue base: Link reported A$1.2 billion ($1.1 billion) in annual revenue during its most recent fiscal year. By comparison, Dye & Durham generated $208.9 million in fiscal 2021.