A consortium of investment and private equity firms will pay $11.3 billion
in cash for financial software and transaction processing specialist SunGard
Data Systems , the companies announced Monday.
Under the agreement, Silver Lake Partners, Bain Capital, The Blackstone
Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co.,
Providence Equity Partners and Texas Pacific Group will pay SunGard
stockholders $36 per share.
The company, which tallies annual revenues of $3 billion, has more than 20,000 customers in more than 50 countries, including the world’s 50 largest financial services companies.
In addition to banks, mutual funds and hedge funds, SunGard routes and processes 70 percent of NASDAQ trades. SunGard was formed in 1983 as a spin-off from Sun Oil Company, which was looking to diversify its assets after the energy crunch of the 1970s.
“SunGard’s track record of delivering mission-critical, value-enhancing
technology solutions to the world’s most important financial institutions
is exceptional,” Glenn H. Hutchins, a cofounder and managing member of
Silver Lake Partners, said in a statement. “We look forward to working in
partnership with the company to safeguard and extend that rich legacy.”
“[The buyers] have a long-term view towards growing the businesses in which
they invest and an excellent track record of working in partnership with
management to build great companies,” Cristobal Conde, SunGard’s president
and CEO, said in a statement.
Sungard directors have approved the proposal and recommended that
stockholders adopt the agreement. As a result of the offer, SunGard is
delaying a previously announced plan to spin off SunGard’s availability
services business.
The acquisition transaction is expected to be completed in the third
quarter, pending stockholder and regulatory approvals. When it does, the company will remain based in Wayne, Pa., and its management will remain in place, Conde said.
Silver Lake Partners and the other investment and equity firms like
SunGard’s reach in the industry.
