Redcentric has completed its acquisition of assets from Sungard Availability Services.
For those who came in late, Sungard’s UK arm of the business went into administration earlier this year and Redcentric took the chance to takeit over, with the move being finalised on July 7.
The deal also includes the provision of other colocation and network services from Sungard Availability Services, Redcentric said.
Redcentric has acquired assets from Sungard Availability Services, which went into administration earlier this year.
The MSP says it has exchanged conditional contracts to acquire the operations and assets relating to three Sungard datacentres [DCs], with completion being conditional on certain revenue thresholds being met within 23 days based on customers agreeing new contract terms.
In the event the thresholds are not met in relation to each of the Sungard datacentres, the acquisition of the relevant datacentre will not complete, Redcentric claims.
The initial minimum consideration payable on completion of all three Sungard DCs is £11 million, while the maximum is £22 million.
Redcentric has meanwhile announced it has completed the acquisition of Sungard’s consulting and AWS cloud services business for £4.2 million, paid in cash.
The UK’s cloudy dreams are being scuppered by huge power increases, and the effects of the Ukraine war are biting.
Already the UK arm of US-based colocation provider Sungard entered administration, due to spiralling energy costs that came on the back of the Covid pandemic.
Energy prices have been getting progressively ridiculous over the past year, with data from the UK government’s Office for National Statistics confirming that the wholesale price of gas was four times higher in January 2022 than it was at the start of 2021.
Datacentres’ largest cost is energy and providers are frantically trying to talk to energy wholesalers.
To be fair, Sungard’s issues included a decline in demand for its services for some time and certain datacentre and workplace facilities becoming unprofitable, with fixed lease and energy costs no longer being offset by customer revenue.
Datacentre provider Sungard AS entered administration, earlier this week.
Sky News claims the AWS and Dell partner has called in Teneo Restructuring to try and secure its future in the face of rising energy costs, a stand-off with landlords over rent prices and bad fallout from COVID-19.
Sungard customers include the NHS, Home Office and Npower and it runs datacentres and workplace recovery centres across the UK and employs nearly 300 people, with its EMEA headquarters based at Heathrow.
Financial technology company SunGard Data Systems is planning to sell itself off for $10 billion, including its pile of debt.
SunGard has popped around to the investment banks collecting advisory mandates to prepare for interviews as early as next week, the people said. The company is thinking about either an outright sale as well as a potential initial public offering.
SunGard is owned by private equity companies and apparently decided to explore a sale after it was approached by at least one other company about a potential takeover.
So far it is all rumour and speculation. But the company is a bit of an oddity. It was bought up by the finance companies just before the 2008 financial crisis. Normally they are gutted off their assets like a kipper and what is left is flogged off.
However the equity companies hung on to SunGard making it one of the longest-held investments in private equity history. Part of the problem is that its owners have struggled to boost the company’s value to the point where they can cash out and make a decent return.
This is odd really as you would think that Silver Lake Partners, TPG Capital, Bain Capital, Blackstone Group, Goldman Sachs Capital, KKR and Providence Equity Partners could not make a fist of making the company a success no-one could.
What appears to have happened is that since the buyout, the firms have leached money from SunGard. In 2012 they paid themselves $720 million with their first dividend from the company.
SunGard provides software and processing services for financial firms and also serves the education and public sectors. Last year, it spun off its disaster recovery unit, which represented about a third of its revenue.
It makes $2.8 billion in annual revenue but it has a $4.7 billion and a cash pile of $447 million..
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