(EnergyAsia, March 31) — New York-based SunGard, a global leader in integrated software and processing solutions primarily for financial services and the pioneer and leading provider of information availability services, said it has agreed to be bought out by a consortium of seven leading private equity investment firms for a sum of US$11.3 billion. The consortium, led by Silver Lake Partners, includes Bain Capital, The Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. L.P., Providence Equity Partners and Texas Pacific Group.
SunGard said its stockholders will receive US$36 in cash for each share of its common stock they hold. SunGard’s existing bonds in the principal amount of $500 million will remain outstanding.
The board has approved the merger agreement and has recommended SunGard’s stockholders to accept the agreement. The transaction is expected to be completed in the third quarter, subject to stockholder and regulatory approvals as well as satisfaction of other customary closing conditions.
Crist—bal Conde, president and CEO of SunGard, said: “This transaction offers great value to our stockholders and represents an endorsement of our business model, industry leadership and financial strength. Our customers and employees should know that it is business as usual, now and following the completion of the transaction. The new investors in SunGard are leading private equity firms. They 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.
“This transaction would not have been possible without the hard work of all our employees. They should be assured that the success of the transaction will depend on growing the business rather than eliminating jobs or reducing service levels. Upon completion of the transaction, our current senior management team will continue to lead the company, with corporate headquarters remaining in Wayne, Pennsylvania.”
Glenn H. Hutchins, a cofounder and managing member of Silver Lake Partners, said: “Our consortium partners are extremely pleased with this investment. We have complete confidence in Cris Conde and his world-class leadership team at SunGard and believe the company has excellent prospects for continued technology leadership and growth. SunGard’s track record of delivering mission-critical, value-enhancing technology solutions to the world’s most important financial institutions is exceptional, and we look forward to working in partnership with the company to safeguard and extend that rich legacy.”
SunGard is a global leader in integrated software and processing solutions, primarily for financial services and the commodities and oil industries. SunGard serves more than 20,000 customers in more than 50 countries, including the world’s 50 largest financial services companies.