It seems there will be some more consolidation in the data center space this fall. Sungard AS announced yesterday that it has entered into an Asset Purchase Agreement with 365 Data Centers that will see the latter acquire ‘the majority of its U.S. Colocation and Network business’.
Sungard AS filed for Chapter 11 bankruptcy back in April, the second time in 3 years it has run aground. This time it looks like the assets will be split up and consolidated, however, and 365 Data Centers certainly has the experience to integrate the assets and reformulate the business. They operate 12 facilities currently, so their footprint could be set to expand somewhat significantly.
Sungard AS operates 18 locations in the US, though it’s unclear the exact outlines of what is covered under this deal. They also offer a range of managed services such as disaster recovery, cloud, and workplace continuity. Their other operations in Europe, Asia, and Canada are also likely to be sold off, although you never know how a restructuring will end up until it does.
First, however, the deal has to pass muster with the court, of course. But assuming they get that approval, the deal is expected to close this fall. Financial terms have not yet been disclosed.
If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!Categories: Datacenter · Managed Services · Mergers and Acquisitions
Discuss this Post