Unisys Corp Unisys Acquires CompuGainT
December 14 2021 - 9:32AM
UK Regulatory
TIDMUSY
Unisys Acquires CompuGainT, Expands Cloud and Infrastructure Capabilities
Acquisition deepens Unisys expertise in targeted, high-growth segments of the
cloud market
BLUE BELL, Pa. and HERNDON, Va., Dec. 14, 2021 /PRNewswire/ -- Unisys
Corporation (NYSE: UIS), a global IT solutions company, today announced it has
acquired leading cloud solutions provider CompuGainT for $87.3 million on a
cash-free, debt-free basis. CompuGain's capabilities in application
modernization, cloud-native agile application development and cloud and hybrid
cloud data management, including its designation as an Amazon Web Services
(AWS) Advanced Consulting Partner, will deepen Unisys' cloud offerings. The
company brings more than 400 engineers, cloud solution architects and
developers.
Unisys funded the transaction, which closed concurrently with the signing of
the acquisition agreement, with cash on hand. CompuGain generated $58 million
of revenue for the 12-month period ending September 30, 2021, up 12% year over
year, with more than 90% of its revenue from client relationships with an
average tenure of greater than nine years. Unisys expects the transaction to be
immediately accretive to adjusted EBITDA and free cash flow (FCF).
"Acquiring CompuGain will enable Unisys to enhance the delivery of rapid and
agile cloud migration, application modernization and data value realization to
our clients," said Unisys Chair and CEO Peter Altabef. "CompuGain has a strong
presence in financial services, which will add to our established position in
that industry. It will also create cross-selling opportunities with both Unisys
clients and CompuGain clients across multiple industries. Unisys expects the
addition of CompuGain to drive revenue and profit growth and increased cash
flow."
"CompuGain's innovative solutions, talent and agility, combined with Unisys'
cloud expertise and global reach, will allow us to deliver desired business
outcomes at a much larger scale," said Debasish Hota, founder and CEO,
CompuGain. "The combination of CompuGain and Unisys will unlock tremendous
value for clients and be a force multiplier in the cloud and hybrid cloud
market. We are delighted to become part of the Unisys family."
Expanding cloud capabilities
CompuGain capabilities will deepen Unisys' cloud expertise and its ability to:
* Deliver rapid and agile cloud migration. CompuGain brings an agile
development process and customizable frameworks for both applications and
Infrastructure as a Service (IaaS). Coupled with Unisys' expertise in
hybrid cloud and cloud optimization services, the enhanced capabilities
will help clients achieve faster and more reliable digital transformation.
* Modernize applications. The integration of Unisys and CompuGain addresses
the rising need for cloud-native capabilities such as micro-services and
micro-application deployment. These capabilities give clients the power to
create new, software-based tools and services that align with business
strategy, automate processes and reduce operational cost.
* Realize data value. CompuGain brings capabilities to help clients improve
data governance, store and manage data with enterprise data lakes to
eliminate data silos and unlock the full potential of their enterprise data
and applications.
* Enhance public cloud skill sets. CompuGain enhances Unisys' significant
cloud capabilities. Among its other accreditations, CompuGain is an AWS
Advanced Consulting Partner. Its competencies across public cloud platforms
include serverless technologies, data lakes, containers, machine learning
and DevSecOps, as well as application and data architecture for cloud
environments.
"Businesses must modernize to remain competitive, and that means keeping
pace with peers in moving to new operating models by deploying hybrid and
multi-cloud environments," said David Tapper, vice president, Outsourcing
and Managed Cloud Services, IDC. "The combination of CompuGain and Unisys
serves as an immediate differentiator that organizations can leverage to
help navigate the complexity of managing multiple cloud environments, with
the goal of meeting time-to-market requirements, driving revenue, ensuring
agility and improving the customer experience."
The purchase price is subject to customary adjustments based on closing
cash, indebtedness and working capital. For disclosures and definitions
related to any Unisys financial metrics referenced in the attached,
including adjusted EBITDA and FCF, please see the Unisys 3Q21 earnings
release, available on the company's website. Baird served as the exclusive
sell side financial advisor and Holland & Knight served as legal counsel to
CompuGain.
In September 2021, leading global technology research and advisory firm
Information Services Group (ISG) recognized Unisys as a global leader for
its cloud and infrastructure solutions in a Provider LensT report.
About Unisys
Unisys is a global IT solutions company that delivers successful outcomes
for the most demanding businesses and governments. Unisys offerings include
digital workplace solutions, cloud and infrastructure solutions, enterprise
computing solutions, business process solutions and cybersecurity
solutions. For more information on how Unisys delivers for its clients
across the commercial, financial services and government markets, visit
www.unisys.com.
Follow Unisys on Twitter and LinkedIn.
About CompuGain
CompuGain is an Amazon Web Services (AWS) Advanced Consulting Partner.
CompuGain has partnered with more than 35 Fortune 1000 Companies with
highly-regulated environments, delivering more than 1,500 projects to date.
CompuGain brings a team of more than 400 engineers, cloud solution
architects and developers providing consultation and implementation
expertise in modern application delivery, data services, micro-services and
digital transformation to achieve the next faster.
Forward-Looking Statements
Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are usually identified by or
are associated with such words as "intend," "plan," "believe," "estimate,"
"expect," "anticipate" and similar terminology. Such forward-looking
statements include those that address activities, events or developments
that Unisys or its management believes or anticipates may occur in the
future, including earnings enhancements, synergies and other benefits from
the CompuGain acquisition. All forward-looking statements are based upon
Unisys' current expectations, various assumptions and data available from
third parties. Unisys' expectations and assumptions are expressed in good
faith, and Unisys believes there is a reasonable basis for them. However,
there can be no assurance that such forward-looking statements will
materialize or prove to be correct as forward-looking statements are
inherently subject to known and unknown risks, uncertainties and other
factors which may cause actual future results, performance or achievements
to differ materially from the future results, performance or achievements
expressed in or implied by such forward-looking statements. Numerous risks,
uncertainties and other factors may cause actual results to differ
materially from those set out in the forward-looking statements, including:
the risk that Unisys may be unable to successfully integrate CompuGain or
that integration costs exceed Unisys' expectations; the risk that Unisys
may not realize the benefits expected from the acquisition, including
earnings enhancements and synergies; potential adverse reactions or changes
to business or employee relationships, including those resulting from the
announcement of the acquisition; the risk that Unisys may not attract,
motivate and retain experienced personnel in key positions; the risk that
Unisys did not identify certain risks relating to the business of CompuGain
or underestimated the severity or probability of certain risks relating to
the business of CompuGain; the risk that Unisys may not effectively
anticipate and respond to volatility and rapid technological innovation;
the risk of adverse developments on Unisys' ability to grow revenue and
expand margin in its Digital Workplace Solutions and Cloud and
Infrastructure Solutions businesses; the risks of doing business
internationally, particularly when a significant portion of Unisys' revenue
is derived from international operations; the risk of cybersecurity
breaches, which could result in significant costs and harm Unisys' business
and reputation; and the other factors discussed in the Item 1A, "Risk
Factors" sections in Unisys' Annual Report on Form 10-K for the fiscal year
ended December 31, 2020 and in Unisys' Quarterly Report on Form 10-Q for
the quarter ended March 31, 2021, and in Unisys' other filings with the
Securities and Exchange Commission which are available at http://sec.gov.
For any forward-looking statements contained in this or any other document,
Unisys claims the protection of the safe harbor for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995. Unisys assumes no obligation to update or revise any forward-looking
statements in light of new information or future events except as required
by law.
###
RELEASE NO.: 1214/9860
Unisys and other Unisys products and services mentioned herein, as well as
their respective logos, are trademarks or registered trademarks of Unisys
Corporation. Any other brand or product referenced herein is acknowledged
to be a trademark or registered trademark of its respective holder.
UIS-C
Contacts: Investors: Courtney Holben, Unisys, 215-986-3379,
courtney.holben@unisys.com; Media: Tony Buglione, Unisys, 215-274-1942,
tony.buglione@unisys.com
END
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