Users need to know SunGard plans

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Users need to know SunGard plans

Lindsay Clark
The acquisition of SunGard Data last week could lead to the software and disaster recovery specialist being broken up, experts have warned.

The £6bn deal was the largest ever private buy-out of a technology firm, and analysts have predicted that the new owners, a consortium including Silver Lake Partners, Bain Capital, Blackstone Group and Texas Pacific, will look to boost revenues and sell parts of the business.

Ovum analyst Samad Masood said it was likely the new owners would split the firm into separate businesses serving the disaster recovery and software markets.

Margaret Smith, chief executive of IT directors group CIO Connect, said she believed the disaster recovery side of SunGard's business was profitable, but its other technology made less money. "Users should ask how sustainable these technologies are. They might have to be prepared for other take-overs and mergers."

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