Bankrupt Sungard AS Sells Off North American Cloud and Managed Services BusinessBankrupt Sungard AS Sells Off North American Cloud and Managed Services Business
The transaction with 11:11, a managed infrastructure solutions provider, is subject to court approval.
August 25, 2022
The transaction with 11:11, a managed infrastructure solutions provider, awaits court approval. Sungard AS expects the transaction to close this fall.
April marked the second time in three years the cloud infrastructure services provider filed for Chapter 11 bankruptcy protection. The company cited a series of factors that led to the bankruptcy round. In 2019, Sungard AS said the need was to reduce its debt by nearly $800 million.
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During the recent restructuring process, Sungard AS’ businesses have continued to run “business as usual,” the company said. The company previously announced a similar asset sale to 365 Data Centers (“365”) for most of its U.S.-based colocation business. The 365 transaction also is pending court approval. Sungard AS says it continues to evaluate potential transactions or other restructuring alternatives; however, it’s preparing to operate its recovery services business as a standalone entity after it emerges from bankruptcy this fall.
Sungard AS’ Michael Robinson
Michael Robinson is CEO and president of Sungard AS.
“11:11’s focus on cloud, connectivity and security, combined with Sungard AS’ cloud and managed services capabilities and team, are a perfect complement. Sungard AS’ CMS customers will continue to benefit from a provider focused on delivering, optimizing and securing their mission-critical cloud and application environments,” Robinson said. “What’s more, as numerous Sungard AS employees are expected to transition to 11:11, customers will also continue to benefit from the expertise within the Sungard AS team.”
Robinson added: “Our intent throughout the restructuring has been to evaluate and pursue outcomes that will meet the expectations and needs of our customers, while at the same time addressing the business’ cost structure challenges.”
Moreover, Robinson noted, the company continues to evaluate its facilities and is analyzing potential impact to customers.
It’s been a busy year on the M&A front for 11:11. The company in January bought managed service and cloud infrastructure assets from Iland.
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