A number of software for the financial sector, FIS (FIS), bought the number two, SunGard, to form a group of 55 000 employees and weighing more than $ 9 billion in revenue this in a hundred countries.
Summer is often conducive to these maneuvers, either a redemption or sale of part of the assets. In recent days have been rich in such operations: IBM buys Merge Healthcare for $ 1 billion, a company specializing in medical imaging and whose technology is used particularly in radiology, cardiology, ophthalmology and orthopedics; Informatica just out of the stock market by being redeemed by pension and investment funds, Symantec Veritas sells its subsidiary to a group of investors led by Carlyle Group and Infor acquires GT Nexus (Large maneuvers in the software).
SunGard recent months had indicated its willingness to go public or find a buyer. And until the last minute, suspense remained whole. In June, the firm Wayne (Pennsylvania) had engaged all the steps to enter the New York Stock Exchange. On this occasion, the company sought a valuation of $ 7 billion
Two companies had also expressed interest in a possible acquisition. SS & amp; C Technologies Holdings Inc. and FIS (FIS Global). It is ultimately the latter who wins the bet for $ 9.1 billion including the assumption of debt SunGard she hopes to refinance. SS & amp; C Technologies Holdings Inc. has completed the acquisition of Advent Software for $ 2.7 billion. The resumption of SunGard would have represented a much larger operation to this editor.
Specializing in integrated IT solutions for financial institutions, the education sector and the public sector, SunGard was created in 1983 as a spin-off of the IT department of the division of Sun Oil Company. The company has over 25,000 customers in more than fifty countries. The company name is composed of the initials of Sun Guaranteed Access to Recovered Data . SunGard was formed through successive acquisitions, more than 150 over the last 20 years. Difficult in these conditions to build a company with a culture that accompanies it and that goes beyond just performing simple financial goals.
Sungard came out of the New York Stock Exchange in 2005 when it was bought by a consortium of seven investment funds (Silver Lake Partners, Bain Capital, Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners and TPG Capital) for $ 11.4 billion dollars. It was then the largest buyout by a group of investment funds in the technology sector
To prepare for these new deadlines. – Sale or IPO – SunGard sold its education business in 2011 and in 2014 its continuity services activity has broadened since to offer a wider range. outsourcing of infrastructure, managed services, cloud solutions, hosting and colocation, backup and replication, continuity and emergency
The ten years between the purchase by the investment group and resale is longer than normal due to the poor financial results of Sungard. In particular the firm was hit by the financial crisis-related slump that banks are an important part of its clients. She suffered losses each year between 2008 and 2012, experienced an upturn in 2013 to plunge in 2014 ($ 222 million losses). The most difficult year was 2009, the company lost $ 1.1 billion on revenue of $ 4.7 billion. $ 11.3 billion acquisition and resale 10 years later to $ 9.2 billion including debt, the transaction is not a great achievement for buyers.
Financial Results Sungard between 2008 and 2012
Declaration Cristóbal Conde, president and CEO of Sungard in 2005 at redemption by investment funds
“This transaction HAS Provided great value to our Represents stockholders and an endorsement of our business model, industry leadership and financial flexibility. As a private company, SunGard will continue to Provide mission-critical software applications to customers in financial services, higher education and the public sector, as well as information availability Delivering services to information-dependent enterprises of all kinds. We look forward to continuing to Provide the high levels of services our customers are Accustomed to receiving send. “
A Brief History of FIS
FIS was created in 1968 under the name Systematics specialized since its creation in the financial sector. In the early 90s, the company ALLTEL Information Services acquired Systematics and Computer Power Inc (CPI), a company specializing in financial lending services and developer of Mortgage Servicing Package (MSP).2003 Californian insurance company Fidelity National Financial repurchased the financial division of ALLTEL Information Services she renamed Fidelity Information Services. Since then, FIS has been particularly active in acquisitions of companies specialized in the financial sector (see below). FIS is publicly traded since 2001. The title was particularly affected when the financial crisis from 56 dollars in July 2007 to 13 dollars in October 2008 (Lehman Brothers went bankrupt on 15 September 2008). He has since rebounded and was traded to over 70 dollars yesterday
The main acquisitions SunGard
| 1997 | Infinity Financial Technology, a company specializing in risk management software for an amount of $ 390 million ($ 313 million in equity and $ 77 million in cash) |
| 1999 | The Israeli firm Oshap Technologies, specializing in middleware for an amount of $ 210 million in shares. |
| 2001 | Comdisco, specialized in disaster recovery for $ 825 million |
| 2004 | Systems & amp; Computer Technology Corp. for $ 590 million in cash |
| 2008 | The French company GL Trade for nearly a billion dollars. In 2007, GL Trade realized a turnover of € 203 million and EBITDA of € 26 million. |
| 2008 | Strohl Systems specializes in disaster recovery and direct competitor of SunGard Availability Services |
| 2009 | The Swiss company Genix Systems AG |
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