RealTime IT News

SunGard Bids to Snap Up Sherwood

SunGard Data Systems , an IT integration provider for the financial services industry, has made an offer to buy London-based insurance software specialist Sherwood International in a deal valued at $105 million.

"This transaction is an attractive opportunity for SunGard to strengthen its global capability for insurance systems," said Ray Davis, group chief executive officer of SunGard Employee Benefit Systems. "Combining Sherwood with SunGard's existing insurance business will allow us to provide customers with an enhanced range of insurance and benefits products from a single vendor.

SunGard has offered 140 pence per share of outstanding Sherwood stock.

The company said it expects to close the deal within two months. Until then, it said, the UK Takeover Code prevents it from providing more information about the deal. It did say that it does not expect the acquisition to have a material impact on its financial results.

Sherwood, with roots in both the insurance industry and government sector, has offices in London, New York, Toronto, Glasgow, and Bangalore, India. Sherwood said it has more than 120 clients in the life and annuities, property and casualty, and reinsurance sectors, including international blue-chip companies in the wholesale and retail insurance industry.