SunGard Looks For Buyer

Company officials said on Monday the Wayne, Pa.-based integrator is in discussions concerning a possible sale of the entire company.

The officials did not speculate on the asking price for the company, but several published reports put the price at around $10 billion. The New York Post reported that the buyer could be a consortium of investors including Silver Lake Partners, Texas Pacific Group and Thomas H. Lee Partners.

The move comes after the company said last fall it would spin off its Availability Services business, which focuses on disaster recovery. That business includes the business continuity assets of the former Comdisco, which SunGard acquired in October of 2001 for $825 million after a protracted battle with Hewlett-Packard.

SunGard is looking to be acquired during a time when the company looks strong financially. The company in February reported income for fiscal year 2004 of $454 million, or $1.54 cents per share, up 23 percent year over year. Revenue for the year was $3.56 billion, up 20 percent year over year.

Guidance from the company at the time estimated income for 2005 to be between $1.51 per share and $1.57 per share.

SunGard has been on an acquisition spree for some time. Just this year, the company acquired United Kingdom-based Integrity Treasury Solutions, developer of a corporate cash and risk management software application, and United Kingdom-based Vivista Holdings, which provides systems and services in the public safety, criminal justice and local government sector.

SunGard's share price on Monday jumped $6.12 to reach $31.07 on the news, which became public before the opening of the market.