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SunGard sold to private equity group

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Stock Investing Course A syndicate of seven private equity investment banking firms have agreed to buy SunGard Data Systems for $11.3 billion, the largest buyout of a public company since 1989.

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Journal Prime Rate Street Wall March 28, 2005 (AXcess News) New York- A syndicate of seven private equity investment banking firms have agreed to buy SunGard Data Systems (NYSE: SDS) for $11.3 billion, the largest buyout of a public company since 1989.

Viridian, the holding company for Northern Ireland's electricity, is in talks over a .62billion bid by Bahraini private equity firm Arcapita Bank.

Stock Market News The deal is being led by Silver Lake Partners and the private equity groups members reads like the whose who of Wall Street. Private equity partners include The Blackstone Group, Bain Capital, Goldman Sachs Capital Partners, Providence Equity Partners, Texas Pacific Group, and Kohlberg Kravis Roberts & Co. L.P.KKR happens to be the private equity investment banking group that did the buyout of publicly held RJR Nabisco for $25 billion in 1989.

Stock Investing Basics SunGard shareholders are to be paid $36 in cash for each share they own. Which is a pretty good deal considering SunGard's shares closed Friday at $31.55. But by Monday, SunGard's shares had bolted 8.9%, or $2.81, to close at $34.36 on heavy volume of over 29 million shares.Outside of the common stock shareholders, there remains $500 million in outstanding bonds, which according to the terms of the agreement are not being purchased. AXcess News suspects that some of those bonds are already in the hands of the private equity buyout group or at the very least, whose terms are not worth calling.The board of directors of SunGard were quick to sign off on the deal, sources said, and the board was also urging shareholders to do the same. It's expected that the buyout of SunGard will be completed by the 3rd quarter of this year, the company said. It still must pass the muster of regulators, though the private equity partners are some of the most regulatory-savvy investment bankers on Wall Street, so few obstacles remain in their way.Prior to the buyout offer, SunGard was planning to spinoff its SunGard Availability Services business, which was announced in October. But the spinoff was called off as part of the deal with the private equity group, sources close to the deal said.

Stock Investing Software SunGard operates in two areas, software and processing solutions, and managed hosting, storage solutions and disaster recovery.

Stock Market Trading Sources said that the management team is expected to remain in place.

Stock Investing For Dummy AXcess News will be reporting on any new market trends related to this story. Members should watch their in-box for late breaking business news. If you're not a member, consider joining now.

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