SunGard explores IPO

Fintech conglomerate SunGard has confirmed that it is "considering pursuing" an initial public offering and using the proceeds to pay off debt.

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SunGard explores IPO

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Last month rumours surfaced that the company was appointing financial advisors to explore a potential $10 billion sale or possible IPO.

Today Reuters reported that JPMorgan Chase, Goldman Sachs, Deutsche Bank, Barclays and Credit Suisse have been picked to lead an IPO that could come later this year.

In response, the company has issued a brief statement, confirming it is looking into a listing, adding: "The timing, number of shares to be offered and the price range of the proposed offering have not yet been determined. The Company expects to use net proceeds of the proposed offering to repay debt."

SunGard was acquired in August 2005 by seven private equity firms and de-listed from the Nyse. However, the post-2008 climate has not been good to the debt-ladened firm, which has appeared increasingly bloated in an economic environment more conducive to smaller, more-focussed and agile competitors.

Annual revenue at SunGard increased last year by two percent to $2.8 billion, with total debt at $4.7 billion and cash at $447 million. Adjusted earnings remained flat at $765 million.

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