UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported) May 22, 2001
(Exact name of registrant as specified in its charter)
DST Systems, Inc.
(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
Delaware 1-14036 43-1581814
333 West 11th Street, Kansas City, Missouri 64105
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (816) 435-6568
Not Applicable
(Former name or former address, if changed since last report.)
FORM 8-K
DST SYSTEMS, INC.
ITEM 1 CHANGES IN CONTROL OF REGISTRANT
Not applicable.
ITEM 2 ACQUISITION OR DISPOSITION OF ASSETS
Not applicable.
ITEM 3 BANKRUPTCY OR RECEIVERSHIP
Not applicable.
ITEM 4 CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
Not applicable.
ITEM 5 OTHER EVENTS
See attached as an Exhibit to this Form 8-K a News Release released May 22, 2001
concerning the announcement of an agreement between State Street Corporation and
Registrant for State Street Corporation to acquire Registrant's portfolio
accounting service business.
ITEM 6 RESIGNATIONS OF REGISTRANT'S DIRECTORS
Not applicable.
ITEM 7 FINANCIAL STATEMENTS AND EXHIBITS
Not applicable.
ITEM 8 CHANGE IN FISCAL YEAR
Not applicable.
ITEM 9 REGULATION FD DISCLOSURE
Not applicable.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
DST Systems, Inc.
/s/ Randall D. Young
Randall D. Young
Vice President and
Assistant General Counsel
Date: May 23, 2001
May 22, 2001
STATE STREET TO ACQUIRE MUTUAL FUND PORTFOLIO ACCOUNTING
SERVICE BUSINESS FROM DST SYSTEMS
State Street Corporation (NYSE: STT) and DST Systems Inc. (NYSE: DST) announced
today that they have signed a definitive agreement for State Street to acquire
DST's portfolio accounting service business. Terms of the transaction were not
disclosed.
DST's portfolio accounting service business utilizes the Portfolio Accounting
System (PAS), an integrated system that automates mutual fund accounting and
investment management record keeping processes such as security pricing and
dividend calculations, income and expense accruals, securities inventories,
accounting for daily shareholder activity and calculation of daily net asset
values. PAS supports investment accounting for mutual funds, private accounts,
variable annuities, separate accounts, unit trusts, insurance portfolios, and
pooled trust accounts.
"With the acquisition of DST's state-of-the-art accounting servicing business,
we are adding an important new dimension to the services we provide our existing
clients. Transactions like this one strategically position State Street to be
the optimal long-term partner who can continually provide the level of
flexibility and innovation our clients need to meet their increasingly complex
challenges in mutual fund accounting and investment management record keeping
processes," said Ronald E. Logue, vice chairman, chief operating officer of
State Street Corporation and head of State Street's Investor Services business.
Under the terms of the agreement, DST will provide data processing support for
PAS and State Street will hire approximately 85 employees of the business. PAS
currently provides each client with essential data processing components to
support automated investment accounting, including application processing,
system support, maintenance and software development. Clients control data
entry, operator access, transaction processing, and output production.
Tom McCullough, Executive Vice President and Chief Operating Officer of DST,
commented: "We are confident that clients of the PAS business will benefit from
being associated with a world-class institution like State Street. This business
has been successful for DST over the last 20 years and we believe that State
Street is in an excellent position to continue and extend that growth. This
business is independent of DST's mutual fund transfer agency business and has no
impact on DST's core business of mutual fund shareholder accounting."
The transaction, which has been approved by the Boards of both companies, is
expected to close in June 2001, subject to regulatory approvals.
With $5.8 trillion in assets under custody and $703 billion under management,
State Street Corporation is one of the world's leading specialists in meeting
the needs of sophisticated global investors. Offices are located in the United
States, Canada, Chile, Cayman Islands, Netherlands Antilles, Ireland, United
Kingdom, Netherlands, France, Belgium, Luxembourg, Switzerland, Germany, Czech
Republic, United Arab Emirates, Russia, People's Republic of China, Taiwan,
South Korea, Japan, Singapore, Australia, and New Zealand. State Street
Corporation's common stock is traded on the New York Stock Exchange under the
symbol STT. For more information, please visit the company's website at
www.statestreet.com.
DST Systems, Inc. (NYSE: DST) provides sophisticated information processing and
computer software services and products that help clients improve productivity,
increase efficiencies, and provide higher levels of customer service. DST is
organized domestically and internationally into three operating segments:
Financial Services, Customer Management, and Output Solutions. DST operates one
of the most advanced data centers in the world, which provides
information-processing services to support the products within each operating
segment. These products are further enhanced through the integration of DST's
advanced technology and e-commerce solutions.
# # #
This news release contains forward-looking statements as defined by federal
securities laws. Such statements are based upon current beliefs and expectations
of State Street's management and are subject to significant risks and
uncertainties. Actual results may vary from those set forth in the
forward-looking statements. The uncertainties include the risk that the benefits
from the purchase may not be realized or may take longer to realize than
expected, and the risk that clients might not consent to the transition. Other
important factors that could cause actual results to differ materially from
those indicated by any such forward-looking statements are set forth in the
company's annual report and subsequent SEC filings. These include risks and
uncertainties relating to the value of worldwide financial markets, dynamics of
markets served, pricing and competition, and the pace of new business. State
Street encourages investors to read the corporation's 2000 annual report,
particularly the section on factors that may affect financial results, and its
SEC filings for additional information with respect to any forward-looking
statements.
DST Systems, Inc.
333 West 11th Street
Kansas City, MO
64105-1594
NYSE & CHX Symbol: DST
Contact:
Alyson Riley (617) 664-6437
State Street Corporation
Kenneth V. Hager (816) 435-8603
Vice President and Chief Financial Officer