Report: SunGard Mulls $2B Sale of Data Managing Business
Software maker SunGard Data Systems is reportedly considering a sale of its data managing operations that could generate up to $2 billion for the company and its plethora of private-equity owners.
The report comes as SunGard has yet to plot an initial public offering eight years after being acquired by a slew of private-equity firms in a leveraged buyout valued at $11.4 billion.
According to Reuters, the software maker is now exploring a sale of its data managing business, which provides data center space and technology infrastructure to clients and posted earnings before interest, tax, depreciation and amortization, or EBITDA, of about $200 million.
It’s not clear which company or companies would be interested in acquiring the unit nor the timing of such a sale.
SunGard tapped Goldman Sachs (NYSE:GS) to advise it on a possible deal, Reuters reported.
A spokesperson from SunGard said it’s not the company’s “policy to comment on rumor or speculation.”
SunGard, which lists about 25,000 customers in over 70 countries, is owned by a number of private-equity firms, including Bain Capital, Blackstone Group (NYSE:BX), KKR (NYSE:KKR), Providence Equity Partners, Silver Lake, TPG Capital and Goldman itself.
Earlier this year Moody’s said SunGard needed to show improvement in its core financial systems offerings and its availability services division, which is where the assets reportedly up for sale are located.
SunGard says it has more than 9,000 clients in North America and Europe for its availability services business, which helps companies minimize exposure to security breaches, data loss, power failure and recover from natural disasters.