Sungard Availability Services 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 Cloud and Managed Services (CMS) business. The transaction with 11:11 is subject to court approval and customary closing conditions. The hearing by the court to approve the APA with 11:11 is anticipated for September 2022. The Company expects the transaction to close this fall.
During the restructuring process, Sungard AS’ businesses in North America have continued to operate largely business as usual, meeting the needs of customers. Sungard AS previously announced a similar transaction with 365 Data Centers (“365”) for a majority of its U.S.-based Colocation business. The 365 transaction is also pending court approval. While the Company continues to evaluate potential transactions or other restructuring alternatives, it is preparing to operate its Recovery Services business as a stand-alone entity after it emerges from restructuring this fall.
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“11:11’s focus on cloud, connectivity and security, combined with Sungard AS’ Cloud and Managed Services (CMS) capabilities and team are a perfect complement. Sungard AS’ CMS customers will continue to benefit from a provider focused on delivering, optimizing and securing their mission-critical cloud and application environments. What’s more, as numerous Sungard AS employees are expected to transition to 11:11, customers will also continue to benefit from the expertise within the Sungard AS team,” said Michael K. Robinson, Chief Executive Officer and President, Sungard Availability Services.
Robinson continued, “Our intent throughout the restructuring has been to evaluate and pursue outcomes that will meet the expectations and needs of our customers, while at the same time addressing the business’ cost structure challenges. Discussions regarding some of Sungard AS’ facilities continue and potential impact to customers is being analyzed.”