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Private equity-backed SunGuard mulls selling data unit for $2bn

19 Jun 2013

data2_lrgPrivate equity-backed software group SunGard Data Systems is reportedly considering a sale of its data management business for up to $2bn.

The data management unit currently has an EBITDA of $200m, said Reuters, citing several people familiar with the matter.

SunGuard is backed by private equity firms Bain Capital, Blackstone, Goldman Sachs Private Equity, KKR, Silver Lake, Providence Equity Partners and TPG Capital, which bought the business for $11.4bn in 2005.

The report noted that Moody’s said earlier this year that the availability service business which includes the managed service unit “has not executed effectively in a recovery/business continuity industry that is otherwise showing growth.”

The availability services unit accounted for a third of SunGuard’s revenues of $4.26bn and EBITDA of $1.25bn last year.

SunGuard underwent a dividend recapitalisation last year, taking on more debt to pay its private equity owners a $720m dividend. It had debts of $6.7bn at the end of 2012.

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