Sil­ver Lake led group said mak­ing $2.2b on SunGard

The Pak Banker - - COMPANIES/BOSS -

WASHINGTON: Ten years af­ter band­ing to­gether to buy SunGard Data Sys­tems Inc. for about $11 bil­lion, an in­vestor group led by Sil­ver Lake Man­age­ment will reap a $2.2 bil­lion gain selling the com­pany to Fi­delity Na­tional In­for­ma­tion Ser­vices Inc., a per­son with knowl­edge of the mat­ter said.

Sil­ver Lake and six other pri­vate eq­uity firms will post more than a 60 per­cent profit on the $3.6 bil­lion in eq­uity they and SunGard's man­age­ment in­vested, ac­cord­ing to the per­son. The gain in­cludes a $724 mil­lion div­i­dend SunGard paid in 2012. Fi­delity Na­tional said Wed­nes­day it will buy the soft­ware maker for $9.1 bil­lion in­clud­ing debt.

The 2005 deal helped spark a surge of debt-fu­eled buyouts, lead­ing up to the 2008 fi­nan­cial cri­sis, when deal val­ues soared to tens of bil­lions of dol­lars. At the time, it was the largest lever­aged buy­out since KKR & Co.'s $31.3 bil­lion ac­qui­si­tion of RJR Nabisco in 1989.

The Sil­ver Lake-led group, which in­cluded Bain Cap­i­tal, Blackstone Group LP, Gold­man Sachs Group Inc.'s pri­vate eq­uity unit, KKR, Providence Eq­uity Part­ners and TPG Cap­i­tal, and their clients in­vested more than $3.4 bil­lion, ac­cord­ing to a com­pany fil­ing. SunGard's man­age­ment kicked in $164 mil­lion, and the soft­ware maker took on $7.4 bil­lion of debt. SunGard has since sold as­set sales and cut long-term debt to about $4.7 bil­lion. Eq­uity hold­ers will re­ceive about $5.1 bil­lion in cash and stock, in­clud­ing $2.8 bil­lion in Fi­delity Na­tional shares, ac­cord­ing to the per­son, who asked not to be iden­ti­fied be­cause the in­for­ma­tion is pri­vate. Gemma Hart, a spokes­woman for Sil­ver Lake at Brunswick Group, de­clined to com­ment on the trans­ac­tion.

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