Date: December 19, 2000
DST SYSTEMS, INC. ANNOUNCES AGREEMENT TO TAKE CONTROLLING INTEREST IN EQUISERVE
KANSAS CITY, MO. (December 18, 2000) - DST Systems, Inc. (NYSE: DST) announced
today that it has signed definitive agreements to take a controlling equity
position in EquiServe Limited Partnership by purchasing for cash interests held
by FleetBoston Financial and Bank One Corporation. The transaction is subject to
regulatory approval and is expected to close in the first quarter of 2001.
Financial terms of the transaction were not disclosed. FleetBoston Financial and
Bank One will retain nominal minority interests, and each will continue various
banking relationships with EquiServe and use EquiServe as its transfer agent.
Upon completion of the transaction, EquiServe's financial results will be
consolidated with those of DST. On a proforma basis, the acquisition is not
expected to have a material impact on DST's net income or earnings per share for
2001. DST will fund the acquisition with operating cash flows and existing
credit facilities.
EquiServe is one of the nation's largest corporate shareholder service
providers, maintaining and servicing the records of approximately 24 million
shareholder accounts for approximately 1,400 publicly traded companies.
EquiServe employs approximately 2,600 associates and estimates revenues of
approximately $300 million for the year 2000.
DST is developing a new stock transfer system, called Fairway, which is designed
to meet the changing regulatory and processing requirements of the corporate
stock transfer industry. Under an existing agreement, DST will receive
additional interests in EquiServe upon delivery of the Fairway system.
The information and comments above may include forward-looking statements
respecting DST and its businesses. Such information and comments are based on
DST's views as of today, and actual results could differ. There could be a
number of factors affecting future results, including those set forth in Form
8-K/A dated March 25, 1999, filed by DST with the Securities and Exchange
Commission. All such factors should be considered in evaluating any
forward-looking comment. The Company will not update any forward-looking
statements in this press release to reflect future events.
* * * * * *
DST Systems, Inc.
333 West 11th Street
Kansas City, MO 64105
NYSE & CHX Symbol: DST
Contact:
Thomas A. McDonnell
President and Chief Executive Officer
(816) 435-8684
Kenneth V. Hager
Vice President and Chief Financial Officer
(816) 435-8603
