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SS&C Technologies Holdings Inc. (NASDAQ: SSNC) saw its shares make a handy gain on Thursday after the company announced that it will be acquiring DST Systems Inc. (NYSE: DST). With markets near all-time highs, it makes sense that there would be some consolidation, especially in the tech sector.

Under the terms of the agreement, SS&C will purchase DST in an all-cash transaction for $84 per share plus assumption of debt, equating to an enterprise value of approximately $5.4 billion.

DST provides solutions through a unique blend of industry knowledge and experience, technological expertise and service excellence to clients across asset management, brokerage, retirement and health care. DST generated pro forma revenue of $2.3 billion for the 12 months ended September 30, 2017.

SS&C expects that this transaction will significantly increase its scale, with roughly $3.9 billion in combined pro forma revenue and 13,000 clients. Additionally, this transaction will expand SS&C’s footprint into the U.S. retirement and wealth management markets, as well as add 110 million or more investor positions across DST’s client base.

The company expects $150 million of run-rate cost savings annually, achieved by 2020. The transaction is expected to be immediately accretive to its adjusted earnings per share before synergies and is expected to result in mid-teens earnings growth in 2019.

The transaction is expected to close by the third quarter of this year. While it has been approved by the board of directors, it is still subject to DST shareholder approval.

Shares of SS&C were last seen up about 5% at $50.00, with a consensus analyst price target of $46.60 and a 52-week trading range of $30.81 to $51.39.

DST traded up 5% at $83.95 a share. The stock has a 52-week range of $50.22 to $84.48 and a consensus price target of $72.40.