EXHIBIT 99.2
SunGard Announces Preliminary Guidance for Acquired Comdisco Business
Wayne, PA, November 19, 2001 - SunGard (NYSE:SDS), a global leader in integrated
IT solutions and eProcessing for financial services, announced today preliminary
guidance for its acquisition of the business continuity assets of Comdisco, Inc.
The total purchase price was $850 million in cash, of which $450 million was
funded with new bank debt. The price includes approximately $25 million paid
for working capital received in excess of agreed-upon levels.
Based upon SunGard's preliminary estimates, the Comdisco acquisition is expected
to be modestly dilutive for the balance of 2001 and the first half of 2002, and
neutral to accretive in the second half of 2002. The earnings impact could be
neutral to full-year net income in 2002 while being accretive in 2003. These
estimates include the effect of customer-based intangible amortization but
exclude any charge for restructuring reserves. SunGard reiterates its outlook
of $0.88 to $0.91 for 2001 diluted earnings per share, excluding the effect of
this acquisition.
James L. Mann, chairman and chief executive officer, commented, "We are pleased
to welcome Comdisco business continuity clients and employees to SunGard. This
acquisition ensures the presence of a strong, independent vendor focused on the
best interests of all clients. We are more strategically focused than ever to
build value for our shareholders, employees and clients."
The acquisition included Comdisco's U.S.-based Availability Solutions business,
as well as its professional services organization, Web hosting unit, and related
operations in the United Kingdom and France. With this acquisition, SunGard now
has more than 60 business continuity facilities and an additional 3,000
customers. Also, SunGard product offerings for Web hosting and network
management services have been significantly enhanced by Comdisco offerings in
these areas.
SunGard estimates that the acquired assets generated revenue of approximately
$460 million and an operating margin of approximately five percent for
Comdisco's fiscal year ended September 30, 2001. For the same twelve month
period, SunGard Business Continuity and Internet Services had revenue of nearly
$450 million and an operating margin of 30 percent.
Cristobal Conde, president and chief operating officer, added, "SunGard has a
proven track record of efficiently integrating more than 100 acquisitions. By
combining the resources and expertise of both companies, we can take advantage
of greater operational efficiencies and offer clients robust, continuity and
high-availability solutions on an international basis. We look forward to
working together with Comdisco clients and employees to set even higher
standards for the industry."
SunGard will hold a Web cast to discuss this announcement today, November 19,
2001, at 5:00 p.m. (EST). You may listen to the Web cast at www.vcall.com.
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Replays will be available from about one hour after the call, at www.vcall.com
or by dialing (719) 457-0820, passcode #709725.
About SunGard Business Continuity and Internet Services
SunGard Business Continuity and Internet Services is an operating group of
SunGard that offers its clients a complete range of enterprise IT services -
planning, building, protecting and managing corporate IT assets. SunGard
Recovery Services provides business continuity services including high-
availability infrastructure/electronic vaulting services, hot-and-cold sites,
recovery network services and work group recovery. SunGard eSourcing specializes
in complex managed hosting services, comprehensive system and network management
services, high-
performance Internet access and high-bandwidth networking. SunGard Planning
Solutions provides business continuity consulting services, technical consulting
services, and client server and web-enabled business continuity planning
software.
About SunGard
SunGard (NYSE:SDS) is a global leader in integrated IT solutions and eProcessing
for financial services. SunGard is also the pioneer and a leading provider of
high-availability infrastructure for business continuity. With annual revenues
in excess of $1 billion, SunGard serves more than 20,000 clients in over 50
countries, including 47 of the world's 50 largest financial services
institutions. Visit SunGard at www.sungard.com.
"Safe Harbor" Statement under Private Securities Litigation Reform Act of 1995
Statements about the Company's outlook for 2001, statements about the expected
effects on SunGard of the acquisition of Comdisco's business continuity assets
and all other statements in this release other than historical facts are
forward-looking statements that are subject to risks and uncertainties that may
change at any time and differ from actual results. Forward-looking statements
include information about possible or assumed future financial results of
SunGard and usually contain words such as "believes," "intends," "expects,"
"anticipates," or similar expressions. SunGard derives most of its forward-
looking statements from its operating budgets and forecasts, which are based
upon many detailed assumptions. While SunGard believes that its assumptions are
reasonable, it cautions that there are inherent difficulties in predicting
certain important factors, such as the timing and magnitude of software sales,
the ramifications of the events of September 11, 2001, the effect of general
economic and market issues on software and services buying decisions, the timing
and scope of technological advances, the integration and performance of acquired
businesses, including the availability solutions business of Comdisco, the
prospects for future acquisitions, the ability to attract and retain key
personnel, and the overall condition of the financial services industry. The
factors set forth in this paragraph and other factors which may affect SunGard
or its ability to complete acquisitions and realize the expected benefits of
acquisitions, as and when applicable, are discussed in SunGard's filings with
the Securities and Exchange Commission, including its most recent Form 10-K, a
copy of which may be obtained from SunGard without charge.
For more information, contact:
Madeline Hopkins (610) 341-4357
Michael J. Ruane (610) 341-8709