365 Data Centers announced it will acquire a majority of Sungard’s U.S. colocation and networking business.
This year saw Sungard’s U.K., U.S., and Canadian operations file for bankruptcy, with most of the UK operation being sold off to U.K. telco Daisy Group and MSP Redcentric.
Sungard Availability Services (Sungard AS) announced that, subject to court approval, it has entered into an Asset Purchase Agreement with 365 DC. Bloomberg reports 365 has bid $52.5 million for the business.
The deal is subject to court approval and customary closing conditions, with the court hearing to approve the agreement scheduled for August 24, 2022. Sungard expects the transaction to close this fall.
Sungard operates 18 data centers and/or workplace recovery centers across the U.S., totaling more than 3 million sq ft (278,700 sqm).
"We have been working hard to determine the best path forward for our business in a manner that meets the critical needs of our customers while strengthening our operating cost structure. The combination of 365 Data Centers and our U.S. Colocation and Network business is an important next step in this process and presents an exciting opportunity in the marketplace with a growing, strong, reputable buyer who is committed to our customers," said Sungard CEO and president Michael K. Robinson.
365 said it is acquiring Sungards' data center facilities and customers in eight 'strategic edge markets' along with its U.S. network infrastructure, routes, and customers.
Funding for the transaction has already been secured from 365’s existing equity owners, including Stonecourt Capital and the company’s bank syndicate.
“This acquisition demonstrates 365 Data Centers’ adherence to its network-centric colocation growth strategy,” said Bob DeSantis, 365 Data Centers CEO. “We have already successfully doubled our business two times since inception in 2017 by acquiring, financing, integrating, and growing quality assets. We look forward to doing the same with the addition of the Sungard colocation and network portfolio, which will further enable us to provide quality services, grow our customer base, and deliver exceptional financial performance, all of which benefits our customers, employees, and investors.”
A buyer for the Canadian business is either yet to be found or hasn't been publicly announced.
Sungard AS is advised in this matter by Akin Gump Strauss Hauer & Feld LLP, Jackson Walker LLP, Cassels Brock & Blackwell LLP, FTI Consulting, Inc., DH Capital, LLC and Houlihan Lokey Capital, Inc.
For more information about this news, visit https://365datacenters.com.