SunGard

SunGard - one of leading companies in the world delivering the software and technologies. More than 17 thousand employees work for SunGard, the company services about 25 thousand clients in more than 70 countries of the world. SunGard is the software and processing solutions for the sphere of finance, education and public sector.

The SunGard network connects financial institutions and provides uninterrupted access to world financial markets and also helps to automate all cycle of biddings from execution of the order before processing of results after completion of the transaction. A system provides access to biddings worldwide, and 47 of 50 largest financial companies of the USA are among users of SunGard.

Within service in ensuring access to Sungard Orange executes connection of customers taking into account specific technical requirements of financial institutions. The protected allocated channels of access based on own international network Orange provide the maximum speed and reliability of transfer of financial data. Connection parameters if necessary can be enshrined in the agreement on the quality level of the provided services (SLA) which defines the financial responsibility of the operator for a deviation from the set service parameters.

Payment of service consists of lump sum payment for installation and configuring of the equipment of SunGard in the territory of the customer and also monthly payment of access to financial services SunGard.

Structure

As of August, 2015 business of SunGard is based around three main divisions:

• SunGard Financial Systems (finance solutions);
• SunGard K-12 Education (software for educational institutions);
• SunGard Public Sector (software for state institutions and non-profit organizations).

History

2019: Declaration of bankruptcy

At the beginning of 2019 Sungard Availability Services declared bankruptcy. This step the company intends to reduce debts three times — from $1.25 billion to $400 million.

Sungard submitted the application bankruptcy according to Chapter 11 of the law of the USA on bankruptcy which leaves the right to the subsequent reorganization with the purpose to lower debt and operating costs behind the company. This agreement creates "a steady capital structure for support of investment plans and growth of the company and also improves its general financial position", said in the statement of the software maker for the financial sector.

The software developer for the financial sector of SunGard declared bankruptcy

Most of creditors and shareholders supported the plan of SunGard. The company is going to leave bankruptcy as soon as possible and to continue work in the normal mode.

Our creditors understand the value of the fact that we created, and invest the new capital in business. As a result of this process [restructurings through bankruptcy are a comment of TAdviser] Sungard will become much stronger company which will continue to service the existing and new clients in the future — the CEO of SunGard Andrew Stern said.

According to the Computer Business Review edition, by the beginning of April, 2019 70% of the largest companies from the list of Fortune 100 are among clients of SunGard, the vendor has 90 technology centers integrated by the separate protected network backbone and also 18 mobile objects located in strategic places. However heavy debts and falling of profitability because of the competition to suppliers of cloud services forced Sungard to carry out bankruptcy.

The plan assumes payments for all commercial transactions, agreements with employees and to other not financed debt obligations. The company emphasizes that at it enough liquid means for accomplishment of the financial liabilities before suppliers and personnel.^[1]

2015: Sale of SunGard to the competitor for $9.1 billion

On August 12, 2015 it is announced sale of SunGard to the large producer of the financial software of Fidelity National Information Services. Thus, SunGard stopped trying to become the public company, the The Wall Street Journal newspaper tells.

The cost of the transaction is $9.1 billion taking into account a debt of SunGard. 45% of this amount it will be paid by cash, and the rest — the stocks Fidelity National.

Plans of SunGard for an entry into the exchange were not fated to come true

As of June 30, 2015 the debt of SunGard makes $4.67 billion Fidelity National is going to refinance it. It is supposed that the company integrated as a result of the transaction will total 55 thousand employees working more than in 100 countries of the world and will be able annually to receive revenue exceeding $9.2 billion Besides, merge will allow to reduce costs on $200 million by 2017, hope in Fidelity National.

The CEO of Fidelity National Gary Norcross called purchase of SunGard a milestone event for the company which at the expense of this transaction will be able to expand better the possibilities of clients and cooperation with them by providing a full range of services. It is about clients among credit and insurance companies and also the companies specializing in the investment management and the international trade operations.

In June, 2015 SunGard submitted the application for the IPO and expected business valuation in the amount of $7 billion, however to plans of the company for an entry into the exchange as it appeared, it was not fated to come true. It is expected that the developer of financial software will be a part of the competitor in the fourth quarter 2015.

The market positively reacted to the solution Fidelity National to purchase SunGard: the initial share from these companies grew in price for 4.8% on a premarketa on August 12, 2015. Since the beginning of year of quotation jumped by 5%. In connection with the transaction the management of Fidelity National made the decision to suspend share repurchase of stocks.^[2]

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