SunGard has dismissed a US Department of Justice complaint challenging its $825 million acquisition of the Availability Solutions business of Comdisco as "baseless and ill-advised" and vowed to vigorously defend the transaction.
The Justice Department filed suit yesterday in the US District Court for the District of Columbia against SunGard and Comdisco in an attempt to block the acquisition.
SunGard officials says they are prepared to proceed quickly with the case and will ask the court to rule on the Justice Department's motion for a preliminary injunction well in advance of the 5 December, 2001 termination date in SunGard's acquisition agreement with Comdisco.
James Mann, chairman and chief executive officer of SunGard, says: "We believe that the government's case is without merit, and we look forward to proving that in court."
He says the transaction is pro-competition as it ensures a strong independent business continuity vendor to compete against the hardware giants.
He adds: "With Comdisco in bankruptcy and its Availability Solutions division continuing to support companies devastated by the terrible events of September 11th, a prompt resolution of this antitrust challenge is critical."
SunGard defeated Hewlett-Packard in a bitter bidding war for Comdisco's disaster recovery business. HP has left its bid on the table, pending the outcome of SunGard's appeal.