The transaction with 11:11, a provider of managed infrastructure solutions, is subject to court approval.
The transaction with 11:11, a provider of managed infrastructure solutions, is awaiting court approval. Sungard AS expects the transaction to close this fall.
April marked the second time in three years that the cloud infrastructure service provider filed for Chapter 11 bankruptcy protection. The company cited a series of factors that led to the bankruptcy. In 2019, Sungard AS said it needed to reduce its debt by nearly $800 million.
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During the recent restructuring process, Sungard AS’ business continued to operate “as usual”, the company said. The company previously announced a similar asset sale to 365 Data Centers (“365”) for most of its US-based colocation business. Transaction 365 is also pending court approval. Sungard AS says it continues to evaluate potential transactions or other restructuring alternatives; however, it is preparing to operate its recovery services business as a stand-alone entity after emerging from bankruptcy this fall.
Michael Robinson is CEO and President of Sungard AS.
“11:11’s focus on cloud, connectivity and security, combined with Sungard AS’ cloud and managed services capabilities and team, is a perfect complement. Sungard AS CMS customers will continue to benefit from a vendor focused on delivering, optimizing and securing their critical cloud and application environments,” Robinson said. “Additionally, as many Sungard AS employees are expected to transition at 11:11, customers will also continue to benefit from the expertise within the Sungard AS team.”
Robinson added: “Our intention throughout the restructuring has been to evaluate and seek results that will meet the expectations and needs of our customers, while meeting the challenges of the company’s cost structure.
Additionally, Robinson noted, the company continues to evaluate its facilities and analyze the potential impact on customers.
It’s been a busy year on the M&A front for 11:11. In May, the company purchased managed services and cloud infrastructure assets from Iland.