DST Systems filed a Form 8-K with the SEC earlier this month, in which it announced it was discussing a potential transaction with Dsicmm Group that would lead to a merger of the two companies' UK operations.

Under the terms of the proposed merger, DST Systems would control 60-65% of the equity in a new company that would take ownership of both Dsicmm and the UK print and mail operations of DST Output.

DST Systems would contribute both the UK operations of DST Output and an unspecified amount of cash to the deal, while Dsicmm's shareholders, who would hold the minority stake in the new company, would contribute their stock.

According to its SEC filing, DST Systems expects a definitive agreement to be signed within 30 days and the transaction to be completed within approximately 20-45 days after signing.

However, the company added that the transaction was subject to due diligence and negotiation of the final definitive agreement, and that "there can be no assurance that DST will enter into a definitive agreement...or that the proposed transaction will be consummated, on the proposed timeline or at all".

Dsicmm declined to comment on the proposed transaction.