US IT service management company 11:11 Systems is to acquire Sungard Availability Services’ (Sungard AS) Cloud Managed Services business.
Terms of the deal were not disclosed, but the transaction is expected to close in the Fall. The company said the deal will expand 11:11’s footprint to 13 additional cloud points of presence.
11:11 said it will gain a team of ‘highly skilled employees’ specializing in cloud management, customer service, AWS and Azure professional services, and cybersecurity. 11:11 will also retain part of Sungard AS’ back-office and administrative teams.
“Sungard AS’ impressive community of enterprise cloud customers is accustomed to a technology partner that is not only expert at managing its cloud infrastructure, but also provides proven expertise in security and recovery services, and these customers will continue to enjoy those advantages with 11:11,” said Brett Diamond, CEO, 11:11. “Given these similarities, this transaction is a natural fit to enhance and strengthen our existing data center footprint, technology stack, and services.”
11:11 is backed by Tiger Infrastructure Partners, a middle-market private equity firm that invests in infrastructure platforms. Last year the company agreed to buy Iland, a global cloud service provider based in Texas with infrastructure in data centers around the world including Equinix in Canada and space in Singapore originally set up in space owned by Pacnet/Telstra. 2021 also saw 11:11 buy Green Cloud Defense, a channel-only cloud provider formerly known as Green Cloud Technologies. Last month, the company announced plans to acquire Static1, a provider of managed network and IT infrastructure services.
“Sungard AS’ expertise in providing cross-platform cloud deployments and management will contribute to our future development which includes taking compliance, scalability, and availability to the next level as we help our customers manage, optimize and protect their mission-critical cloud environments,” said Justin Giardina, CTO, 11:11.
Q Advisors acted as exclusive financial advisor to 11:11 in connection with this transaction, with Perkins Coie acting as legal advisor.
Sungard’s US unit filed for Chapter 11 bankruptcy in April 2022, three years after coming out of bankruptcy. Among the issues listed were high leasing costs and underused space. CEO Michael Robinson also blamed the Covid-19 pandemic and rising energy process.