Exclusive: SunGard to explore possible $10 billion sale – sources

By on April 18, 2015

(Reuters) – Monetary Know-how company SunGard Data Techniques Inc is making ready to nominate Financial advisers to discover a sale that might price it at as so much as $ 10 billion, together with debt, individuals aware of the matter said on Friday.

SunGard has requested investment banks vying for advisory mandates to organize for interviews as early as subsequent week, the people stated. The Company plans to simultaneously discover an outright sale as well as a possible preliminary public offering, the folks introduced.

Personal Equity-owned SunGard decided to explore a sale after it was approached by way of as a minimum one other company a couple of potential takeover, One Of The Crucial people brought. The identity of that firm may not be straight away discovered.

The sources requested not to be recognized for the reason that deliberations are exclusive. A SunGard spokesman didn’t right away reply to a request for remark.

Probably The Most biggest leveraged buyouts that preceded the 2008 Financial main issue, SunGard is without doubt one of the longest-held investments in Personal Equity history. Its homeowners have struggled to raise The Company’s value to the purpose where they are able to money out and make a decent return.

SunGard was obtained for $ Eleven.4 billion in 2005 by using Silver Lake Companions LP, TPG Capital LP, Bain Capital LLC, Blackstone Workforce LP, Goldman Sachs Capital Companions LP, KKR & Co LP and Windfall Equity Companions Inc.

But since the buyout, the companies have taken cash from SunGard. In 2012, for instance, they paid themselves $ 720 million with their first dividend from The Company.

Based in Wayne, Pennsylvania, SunGard gives software and processing services for Financial firms and likewise serves the training and public sectors. Closing yr, it spun off its catastrophe restoration unit, which represented about a 0.33 of its income.

Annual earnings at SunGard increased Ultimate 12 months by using 2 percent to $ 2.8 billion. As of Dec. 31, complete debt used to be $ 4.7 billion and money used to be $ 447 million. Adjusted cash prior to pastime, taxes, depreciation, and amortization used to be flat Final 12 months at $ 765 million.

(Reporting by Liana B. Baker, Greg Roumeliotis and Mike Stone; Enhancing through Leslie Adler)

Reuters: Expertise Information

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