SunGard Capital Corp., the Pennsylvania-based parent company of SunGard Data Systems Inc., may pursue an initial public offering of common stock in 2015, according to SunGard Data Systems Inc.
According to a press release, issued in accordance with Rule 135 of the Securities Act of 1933, as amended, the timing, number of shares offered and price of those shares are currently undetermined, but the financial services and compliance software company expects to use net proceeds of the proposed offering to repay debt.
SunGard Data System’s announcement of the IPO does not assure that the results of the offering will not differ from the company’s expectations. Statements concerning SunGard’s plans to conduct the IPO are “forward-looking” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
The Wall Street Journal reports that the IPO, led by J.P. Morgan Chase & Co. and Goldman Sachs Group Inc., is hopeful to raise approximately $750 million at a market value of about $7 billion. A sale may also be considered.
Though SunGard reported about $2.8 billion in revenue last year, its debt exceeds its cash position by more than five times, with 2014 resulting in $447 million cash to a debt of $4.7 billion.
In a company statement, SunGard emphasized that its decision can be influenced by risk that the offering may not occur in its lifetime, the securities market, company results of operations and additional risks. SunGard also said that it undertakes no obligation to update or revise “forward-looking” statements based on those influencing factors.
Analysis by Fortune.com based on data from Renaissance Capital poses that SunGard’s level of brand recognition among CIOs could help an IPO sale, but SunGard would be among the largest IPOs in 2015 at the amount the company is seeking.
