DST Subsidiary To Buy Red Rocks Capital

(RTTNews) - ALPS, a DST (DST) company that provides products and services to the financial services industry, on Thursday said it has agreed to buy asset manager Red Rocks Capital LLC.

ALPS said the deal's purchase price of up to $65 million will consist of a combination of up-front cash consideration and performance-related contingent consideration.

The company expects to close the deal in the second half of 2015.

Red Rocks, founded in 2003 by Adam Goldman and Mark Sunderhuse, manages and advises $1.8 billion in assetsi through a variety of product structures, including mutual funds and select variable annuity contracts. Goldman and Sunderhuse are expected to continue in their roles as co-managers for the Red Rocks strategy.

Golden, Colorado-based Red Rocks has been sub-adviser to the ALPS|Red Rocks Listed Private Equity Fund from its inception in 2007.

In addition to its investment products, Red Rocks also created and maintains the Red Rocks Global Listed Private Equity Index.

DST, ALPS' parent company, expects the deal to result in an $0.08 to $0.10 dilution of earnings per share for the 12 months following the deak and be slightly accretive to earnings per share in the subsequent 12 months.