SunGard
| Company type | Private (after 2005 buyout) |
|---|---|
| Industry | Software, IT services |
| Founded | 1983 |
| Fate | Acquired by FIS in 2015 |
| Headquarters | Wayne, Pennsylvania , United States |
Area served | Worldwide |
Key people | Andy Stern (leader of SunGard AS in 2014) |
| Products | Software solutions and services for education, financial services, government; disaster recovery; data center hosting |
| Revenue | $4.991 billion (2011) |
Number of employees | 13,000 (2014) |
SunGard was a global American corporation based in Wayne, Pennsylvania, delivering software solutions and services to sectors including education, financial services, and government. Established in 1983 as a spin-off from the computer services unit of Sun Oil Company, its name originally represented Sun Guaranteed Access to Recovered Data, highlighting its early innovation in IT disaster recovery. By 2012, SunGard had achieved the rank of 480 on the U.S. Fortune 500 listing.
In August 2005, a consortium of seven private equity firms purchased SunGard for $11.3 billion, transitioning it to a private company and removing it from the NYSE. Around 2014, the company employed approximately 13,000 individuals and recorded revenues of $4.991 billion in 2011. SunGard also gained brand recognition as the main sponsor of a professional cycling team until 2011.
In August 2015, financial technology provider FIS revealed plans to acquire SunGard, aiming to enhance its enterprise banking and capital markets technology offerings. This acquisition represented a pivotal strategic expansion for FIS, boosting its global footprint and influence within IT and financial service sectors.
Business
SunGard focused on software and processing services tailored for financial institutions, K-12 and higher education systems, as well as public agencies. The firm also delivered continuity assurance and data center hosting solutions through its division now known as SunGard Availability Services (SunGard AS). Its international presence included offices in cities such as Paris, Stockholm, Tunis, locations in South Africa, and the United Kingdom.
Acquisitions
The company’s expansion strategy heavily depended on acquisitions, having completed more than 150 transactions over two decades. Significant mergers included Performance Pathways, Vericenter, InFlow, Strohl Systems, Comdisco Continuity Services, Guardian iT PLC (availability services), Systems & Computer Technology Corp. (SCT) (higher education), and Kiodex Inc. On the financial software front, acquisitions encompassed 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.
Highlighted acquisitions:
- In 1997, SunGard acquired Infinity Financial Technology for roughly $390 million in stock and cash payments to broaden its trading and risk management software portfolio. Infinity had generated $60 million in revenue during 1996.
- The 1999 purchase of Israeli firm Oshap Technologies for $210 million in stock enabled SunGard to add middleware capabilities through Mint Communications alongside front-office portfolio management via Decalog.
- In 2001, after obtaining regulatory clearance, SunGard bought Comdisco Inc.’s disaster recovery division for $825 million.
- To strengthen its higher education offerings, SunGard acquired Systems & Computer Technology Corp. (SCT) in 2004 for $590 million in cash.
- In 2008, the company acquired a controlling interest in Paris-based GL Trade for nearly $1 billion; this included NYSE Euronext’s 40% stake despite GL Trade’s €203 million revenue and €26 million EBITDA reported in 2007 making it a financially significant investment.
- Also during 2008, SunGard purchased Strohl Systems for an estimated $450 million cash consideration to enhance its recovery planning and availability services; Strohl was integrated into SunGard Availability Services headquartered in King of Prussia, Pennsylvania.
- Expanding into cloud computing services in 2010, SunGard acquired data center provider 365 Hosting Limited.
These targeted acquisitions significantly expanded SunGard’s range of products and increased its market presence within financial technology and IT services industries.
Leveraged buyout 2005
Previously traded on the NYSE under the ticker symbol SDS, the company was purchased on August 11, 2005, by a coalition of seven private equity firms in a deal valued at $11.3 billion. The consortium consisted of Silver Lake Partners, Bain Capital, Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners, and TPG Capital.
De-merger activities
- In December 2010, The Capita Group plc completed the acquisition of SunGard Public Sector Holdings Ltd, which served the UK public sector, for £86 million. This division was subsequently renamed Capita Secure Managed Services.
- In August 2011, private equity firm Hellman & Friedman LLC acquired SunGard’s Higher Education division and merged it with Datatel. The combined company, led by Datatel CEO John Speer, was rebranded as Ellucian in 2012 after the transaction.
- The merger received clearance from the Department of Justice on December 7, 2011, and by March 2012, Ellucian’s establishment was finalized. This divestiture helped reduce SunGard’s $8.08 billion debt but was expected to cause an annual revenue decline of approximately $580 million, with fiscal year 2011 revenues estimated at $4.7 billion.
- In March 2014, SunGard separated its Availability Services division into an independent entity named Sungard AS, with Andy Stern appointed as its leader.
- In 2015, SunGard was acquired by FIS.
- By February 2017, Vista Equity Partners purchased SunGard’s Public Sector and Education units from FIS. SunGard Public Sector was rebranded as Superion, while SunGard Education was integrated into Vista’s PowerSchool portfolio by April 2017.