SunGard Goes for $11.3 Billion
It's official.
SunGard
(SDS) - Get Report
is being acquired by a handful of private equity firms for $11.3 billion.
The deal, which came to light last week, was organized by Silver Lake Partners and includes Bain Capital, the Blackstone Group, Goldman Sachs Capital Partners, Kohlberg Kravis Roberts, Providence Equity Partners and Texas Pacific Group. The offer is worth $36 a share in cash, a 14% premium on the basis of Friday's closing price. SunGard's existing bonds in the principal amount of $500 million will remain outstanding.
Shares in SunGard, which develops software for the financial services industry and sells data protection and recovery services, rose $3.17, or 10%, to $34.72 in the premarket.
The transaction is expected to be completed in the third quarter of 2005.