SunGard offloads Ambit core banking unit

Singapore's Silverlake Axis is to acquire SunGard Ambit, the core banking unit of the US technology group, for $12 million.

  6 4 comments

SunGard offloads Ambit core banking unit

Editorial

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The all-cash acquisition will position Silverlake in the market for mid-tier retail banking software and services, adding more than 50 new customers to its current base of over 150 client locations.

The $12 million (S$16.7 million) price tag is some way off the S$120 million that SunGard shelled out in 2006 for the business when its Asia Pacific operations acquired the assets of Singapore's System Access. At the time, core banking transformation was seen as a critical issue for banks, and the acquisitions of System Access' mid-80's Symbols package was viewed as a means for SunGard to establish a firm toe-hold in the market - and ambition which it signally failed to achieve.

The sale comes as Sungard prepares for a $9.1 billion takeover by FIS, and may presage the start of an unwinding of the group's massive portfolio of acquired businesses.

Dieter Kaeslin, COO of SunGard’sretail banking business says: “SunGard has always been focused on driving our businesses in a direction which delivers more value to our clients. We believe that this transaction fulfils this purpose, and is the best outcome for our retail banking customers and employees.”

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Comments: (4)

A Finextra member 

Just to clarify, article refers to a purchase price of $12m and $20m... The price is $12m from what I can see elsewhere.

Sounds low... Anyone got thoughts on why do low?

A Finextra member 

Offload an underperforming business unit and eliminate another duplicated set of product offerings post-acquisition (FIS already has a collection of core banking and card management systems).

A Finextra member 

The entire IPR and zillions of LOC for just $12m .. very strange... looks very low... with 50 customers the AMC revenue and CRs and Production Support business around those 50 customers should be worth much more.... 

A Finextra member 

I believe SunGard paid $120M when they bought System Access a few years ago. So either $12M or $20M (whicever it is) seems scant payback on their investment! 

I guess with the looming merger with FIS, the last thing the new company needs is yet another core banking system (FIS must have at least three or four already).

Maybe it's also a reflection on the reality of the market for core banking solutions? Many, many vendors all telling us that banks need to rennovate their core systems but few banks seemingly buying that. And if the market noise is much to go on, most of the success seems to be shared between a couple of the larger players and then many of the smaller local suppliers who focus on specific countries or regions.

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