Sungard AS Announces Successful Bid for Its N.A. Recovery Services Business by 11:11 Systems
Sungard Availability Services (Sungard AS) today announced that it has entered into an Asset Purchase Agreement (APA) with 11:11 Systems (11:11), a managed infrastructure solutions provider, to acquire its North American Recovery Services (RS) business.
Sungard Availability Services (“Sungard AS”) today announced that it has entered into an Asset Purchase Agreement (APA) with 11:11 Systems (“11:11”), a managed infrastructure solutions provider, to acquire its North American Recovery Services (RS) business. The parties anticipate receiving bankruptcy court approval by mid-October and the transaction is expected to close later in the fall.
Sungard AS previously announced that 11:11 would purchase its North American Cloud and Managed Services (CMS) business, which was approved by the bankruptcy court on September 14, 2022. In addition, a similar transaction with 365 Data Centers (“365”) to purchase a majority of Sungard AS’ U.S.-based Colocation and Network Services business was approved by the bankruptcy court in late August 2022. Transaction support teams within Sungard AS, 11:11 and 365 have been working diligently since each transaction was announced to orchestrate seamless transitions for Sungard AS’ customers. Additionally, a significant number of Sungard AS’ employees in North America, as well as in India and beyond, will transition to 11:11 or 365 in connection with the transactions.
The sale of the RS business to 11:11 will transition one of the Company’s longest-standing business units and represents the final sale transaction for North America. The RS business, for which Sungard AS has a long-time reputation as an industry leader, includes its Managed Recovery Program (MRP), Cloud Recovery and traditional infrastructure Recovery Services (Hotsite) and its recently announced Cyber Incident Recovery Services. In addition, the transaction includes Sungard AS’ Consulting business, in which many of its consulting experts work directly with RS and CMS customers to solve for their unique and often complex use cases.
“It was evident early in our transition planning with 11:11 for the CMS transaction that there were incredible synergies between 11:11’s cloud, backup and disaster recovery offerings and our RS business. After pursuing several options for our RS business, including operating it as a standalone business, along with our advisors and board we concluded that 11:11 was the best option for our RS business. We believe the transactions with 11:11 will create a great outcome for our customers and Sungard AS’ team members,” said Michael K. Robinson, Chief Executive Officer and President, Sungard Availability Services.
Robinson continued, "I couldn't be more pleased with the combined sales of our North American CMS and RS businesses to 11:11. Sungard AS’ CMS, RS and Consulting capabilities will bring the perfect complement of solutions, services and expertise to 11:11’s rapidly growing portfolio, arguably creating one of the most complete cloud, recovery and resiliency providers in the industry today. The combined resources and talent of this team will meet industry and customer needs today, but also well into the future as 11:11 solidifies its position in the market as a global cyber resiliency and disaster recovery solutions provider.”
During the restructuring process, Sungard AS’ businesses in North America have continued to operate largely business as usual, meeting the needs of customers. To ensure a seamless transition of services as the transactions move forward and following completion, Sungard AS, 11:11 and 365 will put a Transition Services Agreement (TSA) in place between the parties.
Additional information about Sungard AS’ chapter 11 filing can be found at: https://cases.ra.kroll.com/SungardAS.
Information about the Canadian proceedings can be found at: http://www.alvarezandmarsal.com/SungardASCanada.
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.
About Sungard Availability Services
Sungard Availability Services (Sungard AS) is a leading provider of cloud connected infrastructure solutions serving enterprise customers from hardened data centers and workplace recovery facilities in eight countries. Sungard AS has a 40-year track record of delivering resilient and highly available hybrid IT solutions. Visit Sungard AS at www.sungardas.com or call +1 888 537-6519 in the U.S. or +44 808 238-8080 in the U.K. Connect with us on our blog, LinkedIn, Twitter, Facebook and YouTube.
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