SunGard (NYSE:SDS) announced today the completion of the acquisition of SunGard Data Systems Inc. by a consortium of private equity investment firms organized by Silver Lake Partners that also includes Bain Capital, The Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts & Co. L.P., Providence Equity Partners and Texas Pacific Group.
Under the terms of the merger agreement, the company's stockholders are entitled to receive $36 per share in cash, without interest.
SunGard announced on March 28, 2005 a definitive agreement with the private equity consortium regarding the acquisition of the company for $11.4 billion in cash. This transaction represents the largest technology privatization as well as the second largest leveraged buyout ever completed.
Cristóbal Conde, president and chief executive officer, commented, "This transaction has provided great value to our stockholders and represents an endorsement of our business model, industry leadership and financial flexibility. As a private company, SunGard will continue to provide mission-critical software applications to customers in financial services, higher education and the public sector, as well as delivering information availability services to information-dependent enterprises of all types. We look forward to continuing to provide the high levels of service our customers are accustomed to receiving."
"On behalf of everyone at SunGard, I would like to acknowledge the numerous contributions of Jim Mann, who has led the company since 1983. Jim has done more to create stockholder value than any other person in the history of our company, and for that he has our deepest gratitude," added Mr. Conde.
Glenn H. Hutchins, a cofounder and managing member of Silver Lake Partners, said on behalf of the private equity consortium, "SunGard begins its new life as a private company today. Though we have a lot of hard work in front of us, this is an occasion to thank the many contributors, particularly the company's exemplary management team, who made this transaction possible. As new owners of SunGard, we will work closely with management to build upon and extend the company's legacy of technology leadership, cutting-edge products, and world-class customer service."
SunGard stock will cease to trade on the New York Stock Exchange at market close today and will be delisted. Under the terms of the agreement, SunGard stockholders are entitled to receive $36 in cash for each share ("merger consideration") of SunGard common stock that they hold. As soon as practicable, a paying agent appointed by SunGard will mail a letter of transmittal and instructions to all SunGard stockholders of record. The letter of transmittal and instructions will contain information on how to surrender SunGard common stock in exchange for the merger consideration, without interest. Stockholders of record should be in receipt of the letter of transmittal before surrendering their shares. Stockholders who hold shares through a bank or broker will not have to take any action to have their shares converted into cash as such conversions will be handled by the bank or broker.