Type Private Key people Russ Fradin
(CEO) Owner FIS Global Number of employees 13,000 (2014) | Industry Information Technology Revenue $4.991 billion (2011) Founded 1983 Parent organization FIS | |
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Products Computer software
Support services Headquarters Wayne, Pennsylvania, United States CEO Russell P. Fradin (31 May 2011–) Subsidiaries Sungard Availability Services | ||
SunGard is an American multinational company based in Wayne, Pennsylvania, which provides software and services to education, financial services, and public sector organizations. It was formed in 1983, as a spin-off of the computer services division of Sun Oil Company. The name of the company originally was an acronym which stood for Sun Guaranteed Access to Recovered Data, a reference to the disaster recovery business it helped pioneer. SunGard is ranked at 480th in the U.S. Fortune 500 list in the year 2012.
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In August 2005 the company was acquired by seven private equity firms and de-listed from the NYSE. SunGard was one of the title sponsors of the Tinkoff pro cycling team until the end of 2011.
In August 2015, FIS announced that it had signed a definitive agreement to acquire SunGard.
Sungard interview
Business
SunGard provides software and processing for financial services, K-12 and Higher Education, and the public sector. It also provided continuity-assurance and production data center hosting services, now part of SunGard AS. SunGard has offices in many parts of the world outside of the United States including Paris, South Africa, Tunis, Stockholm, and the United Kingdom.
Acquisitions
SunGard has historically grown by acquisition. Past mergers include Performance Pathways, Vericenter, InFlow, Strohl Systems, Comdisco Continuity Services, and Guardian iT PLC on the availability side, Systems & Computer Technology Corp. (SCT) on the higher education side, and Kiodex. Inc., GL Trade, Oshap (Mint, Decalog), TRAX, Carnot AG, Front Capital Systems (Front Arena), Martini, Monis, APT, Dyatron, Reech, VPM, Phase 3 Systems, Infinity, Microhedge, Reconciliation, Automated Securities Clearance India, Opus Renaissance Software Inc., and National Computer Systems Financial Systems Division on the (primarily financial) software and processing side. SunGard has completed more than 150 acquisitions over the past 20 years.
Among the largest acquisitions were:
De-merger activities
In March 2014 SunGard completed the split-off of its Availability Services business, forming the independent company SunGard AS. Andy Stern continues to lead the SunGard AS business.
In August 2011 Datatel and SunGard's Higher Education group announced the definitive agreement to combine businesses and operate as one company. Datatel’s current chief executive officer, John Speer, will be the chief executive officer of the combined business. Ron Lang, the CEO of SunGard Higher Education, will continue to play an active role in the combined business as vice chairman of the board of directors.
Affiliates of private equity firm Hellman & Friedman LLC will acquire the SunGard Higher Education businesses from SunGard Data Systems Inc. for an aggregate cash purchase price of US$1.775 billion and combine the acquired businesses. The combined company will operate under a new name, Ellucian, as announced at the 2012 annual users' conference.
On 7 December Hellman & Friedman, Datatel and SunGard announced that the proposed combination of Datatel and SunGard Higher Education had cleared Department of Justice review and the companies are preparing to close the transaction in the first quarter of 2012. In March 2012, the combination was announced, with the new company being called Ellucian.
SunGard's total debt of US$8.08 billion will be alleviated by selling the Higher Education business line, however a projected annual revenue shortage of $580 million can be assumed, resulting in a total revenue projection for the fiscal 2011 of $4.7 billion, suggesting a negative revenue trend.
In December 2010, The Capita Group plc acquired SunGard Public Sector Holdings Ltd (part of the business servicing the UK public sector) for £86 million. The new business was known as Capita Secure Information Systems; it has now been renamed Capita Secure Managed Services.
Leveraged buyout 2005
Formerly listed on the NYSE (ticker symbol SDS) on August 11, 2005 the company was acquired by a consortium of seven private equity investment firms in a transaction valued at $11.3 billion. The partners in the acquisition were Silver Lake Partners, Bain Capital, Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners, and TPG Capital.