EXHIBIT 99.4
UNAUDITED PRO FORMA FINANCIAL INFORMATION
SunGard expects that the Merger will be accounted for as a pooling of
interests, which means that for accounting and financial reporting purposes
SunGard will treat SunGard and Infinity as if they had always been combined. The
pro forma information is provided for illustrative purposes only and should not
be relied upon as necessarily being indicative of the historical results that
SunGard and Infinity would have had if the companies actually had always been
combined, or the results which may be obtained in the future.
The Unaudited Pro Forma Combined Condensed Financial Data should be read
along with the historical financial statements and the related notes of SunGard
and Infinity, all of which are incorporated by reference in this Proxy
Statement/Prospectus.
SUNGARD DATA SYSTEMS INC.
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
SUNGARD INFINITY ADJUSTMENTS COMBINED
----------- ---------- ----------- -----------
Revenues............................................. $609,557 $46,209 -- $ 655,766
Operating expenses, excluding purchased in-process
research and development and other costs........... 505,321 38,014 -- 543,335
Purchased in-process research and development and
merger costs....................................... 9,956 861 -- 10,817
-------- ------- ------- ---------
Operating income..................................... 94,280 7,334 -- 101,614
Net interest income (expense)........................ (641) 1,064 -- 423
-------- ------- ----------- ---------
Income before income taxes........................... 93,639 8,398 -- 102,037(3)
Income taxes......................................... 38,661 3,023 -- 41,684
-------- ------- ----------- ---------
Net income........................................... $ 54,978 $ 5,375 -- $ 60,353(3)
======== ======= =========== =========
Fully diluted net income per common share............ $ 0.62 $ 0.26 -- $ 0.59
======== ======= =========== =========
Shares used to compute fully diluted net income per 88,620 20,990 (6,717)(2) 102,893
common share....................................... ======== ======= =========== =========
See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements.
SUNGARD DATA SYSTEMS INC.
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
SUNGARD INFINITY ADJUSTMENTS COMBINED
----------- ---------- --------------- -------------
Revenues............................................. $ 670,309 $41,548 -- $ 711,857
Operating expenses, excluding purchased in-process
research and development and merger costs.......... 559,440 33,049 -- 592,489
Purchased in-process research and development and
merger costs....................................... 51,083 -- -- 51,083
--------- ------- -------- ---------
Operating income..................................... 59,786 8,499 -- 68,285
Net interest income.................................. 3,783 218 -- 4,001
--------- ------- -------- ---------
Income before income taxes........................... 63,569 8,717 -- 72,286(3)
Income taxes......................................... 28,668 3,312 -- 31,980
--------- ------- -------- ---------
Net income........................................... $ 34,901 $ 5,405 -- $ 40,306(3)
========= ======= ======== =========
Fully diluted net income per common share............ $0.41 $0.28 -- $0.41
========= ======= ======== =========
Shares used to compute fully diluted net income per 86,122(1) 19,243 (6,158)(2) 99,207
common share....................................... ========= ======= ======== =========
See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements.
SUNGARD DATA SYSTEMS INC.
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1995
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
SUNGARD INFINITY ADJUSTMENTS COMBINED
----------- ----------- --------------- -------------
Revenues............................................. $ 532,628 $24,738 -- $ 557,366
Operating expenses, excluding merger
costs.............................................. 448,314 19,062 -- 467,376
Merger costs......................................... 4,238 -- -- 4,238
--------- ------- -------- ---------
Operating income..................................... 80,076 5,676 -- 85,752
Net interest income.................................. 5,036 31 -- 5,067
--------- ------- -------- ---------
Income before income taxes........................... 85,112 5,707 -- 90,819 (3)
Income taxes......................................... 36,440 2,258 -- 38,698
--------- ------- -------- ---------
Net income........................................... 48,672 3,449 -- 52,121 (3)
Preferred stock redemption........................... -- (1,276) -- (1,276)
--------- ------- -------- ---------
Net income attributable to common stockholders....... $ 48,672 $ 2,173 -- $ 50,845 (3)
========= ======= ======== =========
Fully diluted net income per common share............ $0.61 $0.12 -- $0.55
========= ======= ======== =========
Shares used to compute fully diluted net income per
common share....................................... 79,336(1) 18,382 (5,882)(2) 91,836
========= ======= ======== =========
See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements.
SUNGARD DATA SYSTEMS INC.
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1994
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
SUNGARD INFINITY ADJUSTMENTS COMBINED
----------- ---------- --------------- -------------
Revenues............................................. $ 437,190 $12,595 -- $ 449,785
Operating expenses................................... 366,864 10,471 -- 377,335
--------- ------- -------- ---------
Operating income..................................... 70,326 2,124 -- 72,450
Net interest income.................................. 2,202 15 -- 2,217
--------- ------- -------- ---------
Income before taxes.................................. 72,528 2,139 -- 74,667(3)
Income taxes......................................... 29,441 498 -- 29,939
--------- ------- -------- ---------
Net income........................................... $ 43,087 $ 1,641 -- $ 44,728(3)
========= ======= ======== =========
Fully diluted net income per common share............ $ 0.56 $ 0.09 -- $ 0.50
========= ======= =========== =========
Shares used to compute fully diluted net income per
common share....................................... 77,004(1) 17,866 (5,717)(2) 89,153
========= ======= =========== =========
See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements.
SUNGARD DATA SYSTEMS INC.
PRO FORMA COMBINED CONDENSED BALANCE SHEET
SEPTEMBER 30, 1997
(UNAUDITED)
(IN THOUSANDS)
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
SUNGARD INFINITY ADJUSTMENTS COMBINED
----------- ----------- --------------- ------------
ASSETS:
Cash and equivalents.............................. $ 32,841 $41,080 -- $ 73,921
Accounts receivable, net.......................... 190,272 20,893 -- 211,165
Prepaid expenses and other current assets......... 20,415 510 -- 20,925
Deferred income taxes............................. 20,628 887 -- 21,515
-------- ------- -------- --------
Total current assets......................... 264,156 63,370 -- 327,526
Property and equipment, net....................... 116,673 3,468 -- 120,141
Intangible assets................................. 356,512 927 -- 357,439
-------- ------- -------- --------
Total assets................................. $737,341 $67,765 -- $805,106
======== ======= ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Short-term and current portion of long-term debt $ 20,847 $ 302 -- $ 21,149
Accounts payable.................................. 12,383 3,439 -- 15,822
Accrued compensation and benefits................. 39,428 4,794 -- 44,222
Other accrued expenses............................ 34,907 2,528 -- 37,435
Deferred revenues................................. 100,916 8,774 -- 109,690
-------- ------- -------- --------
Total current liabilities.................... 208,481 19,837 -- 228,318
Long-term debt 3,037 463 -- 3,500
Stockholders' Equity:
Preferred stock.............................. -- -- -- --
Common stock................................. 868 33,368 (33,238)(2) 998
Capital in excess of par value............... 181,880 -- 33,238 (2) 215,118
Notes receivable from stockholders........... (96) (438) -- (534)
Restricted stock plans and deferred
compensation............................... (1,281) (391) -- (1,672)
Retained earnings............................ 349,923 14,948 -- 364,871 (3)
Foreign currency translation adjustment...... (5,381) (22) -- (5,403)
-------- ------- -------- --------
525,913 47,465 -- 573,378
Treasury stock............................... (90) -- -- (90)
-------- ------- -------- --------
Total stockholders' equity................... 525,823 47,465 -- 573,288
-------- ------- -------- --------
Total liabilities and stockholders' equity... $737,341 $67,765 -- $805,106
======== ======= ======== ========
See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements.
SUNGARD DATA SYSTEMS INC.
PRO FORMA COMBINED CONDENSED BALANCE SHEET
DECEMBER 31, 1996
(UNAUDITED)
(IN THOUSANDS)
HISTORICAL HISTORICAL PRO FORMA PRO FORMA
SUNGARD INFINITY ADJUSTMENTS COMBINED
----------- ----------- --------------- ------------
ASSETS:
Cash and equivalents.............................. $ 46,072 $36,952 -- $ 83,024
Accounts receivable, net.......................... 158,246 18,802 -- 177,048
Prepaid expenses and other current assets......... 18,507 337 -- 18,844
Deferred income taxes............................. 13,632 878 -- 14,519
-------- ------- -------- --------
Total current assets......................... 236,457 56,978 -- 293,435
Property and equipment, net....................... 109,523 2,896 -- 112,419
Intangible assets................................. 333,338 430 -- 333,768
-------- ------- -------- --------
Total assets................................. $679,318 $60,304 -- $739,622
======== ======= ======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY:
Short-term and current portion of long-term debt $ 34,932 $ 368 -- $ 35,300
Accounts payable.................................. 13,531 1,739 -- 15,270
Accrued compensation and benefits................. 41,581 3,959 -- 45,540
Other accrued expenses............................ 29,877 2,861 -- 32,738
Deferred revenues................................. 90,345 10,399 -- 100,744
-------- ------- -------- --------
Total current liabilities.................... 210,266 19,326 -- 229,592
Long-term debt.................................... 4,414 553 -- 4,967
Stockholders' Equity:
Preferred stock.............................. -- -- -- --
Common stock................................. 423 32,207 (32,077)(2) 553
Capital in excess of par value............... 175,937 -- 32,077 (2) 208,014
Notes receivable from stockholders........... (559) (826) -- (1,385)
Restricted stock plans and deferred
compensation............................... (1,535) (508) -- (2,043)
Retained earnings............................ 292,113 9,573 -- 301,686 (3)
Foreign currency translation adjustment...... (266) (21) -- (287)
-------- ------- -------- --------
466,113 40,425 -- 506,538
Treasury stock............................... (1,475) -- -- (1,475)
-------- ------- -------- --------
Total stockholders' equity................... 464,638 40,425 -- 505,063
-------- ------- -------- --------
Total liabilities and stockholders' equity... $679,318 $60,304 -- $739,622
======== ======= ======== ========
See accompanying Notes to Unaudited Pro Forma Combined Condensed Financial
Statements.
SUNGARD DATA SYSTEMS INC.
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE I -- STOCK SPLIT
The number of fully diluted shares used to calculate net income per common share
has been adjusted retroactively to reflect two-for-one stock splits which
occurred in July 1995 and September 1997.
NOTE 2--EXCHANGE RATIO
Under the Reorganization Agreement, subject to the provisions contained therein
relating to the payment of cash in lieu of fractional shares, each outstanding
share of Infinity Common Stock will be converted into the right to receive 0.68
of a share of SunGard Common Stock (subject to adjustment as appropriate to
reflect any stock split, stock dividend, reverse stock split, reclassification,
recapitalization or other similar transaction involving the SunGard Common Stock
or the Infinity Common Stock between the date of the Reorganization Agreement
and the effective time of the Merger). Also, all options to purchase shares of
Infinity Common Stock will be converted into options to purchase shares of
SunGard Common Stock (subject to appropriate adjustments to the exercise price
and number of shares subject thereto based upon the foregoing exchange ratio).
This exchange ratio was used in computing shares and per share amounts in the
accompanying unaudited pro forma combined condensed financial statements.
NOTE 3---MERGER COSTS
All pro forma information excludes merger costs, estimated to be approximately
$4.0 million. These costs are principally comprised of investment advisory,
legal, accounting and printing costs and will be charged to expense in the
period the Merger is consummated.