US IT service management company 11:11 Systems, backed by Tiger Infrastructure Partners, is to acquire Sungard Availability Services’ (Sungard AS) Cloud Managed Services business. This deal will expand 11:11’s footprint to 13 additional cloud points of presence.
As part of the acquisition, 11:11 said it will gain a team of highly skilled employees with specialization in cloud management, customer service, AWS and Azure professional services, and cybersecurity. 11:11 will also be expected to 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.”
Tiger Infrastructure Partners, which backs 11:11 Systems, is a middle-market private equity firm investing in growing infrastructure platforms. Q Advisors, a global TMT investment banking boutique, was the exclusive financial advisor to 11:11 throughout this transaction. The legal advisor to 11:11 was Perkins Coie. The company has not disclosed the terms of the transaction.
Three years after coming out of bankruptcy, Sungard’s US unit filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas with about $424 million in secured debt in April 2022. The managed IT company filed listed high leasing costs and underused space among the issues. CEO Michael Robinson also cited the Covid-19 pandemic and the rising energy process.
11:11 Systems – recent acquisitions
11:11 Systems has been expanding across North America, EMEA and APAC along its three core pillars of cloud, connectivity and security through acquisitions over the past few years.
Most recently, they acquired Static1, a managed network and IT infrastructure development and services company in July 2022.
Before that, 11:11 acquired iLand, a cloud service provider (CSP) providing infrastructure-as-a-service (IaaS), disaster recovery-as-a-service (DRaaS), and backup-as-a-service (BaaS).
It also acquired Green Cloud Defense which is a Top 250 MSSP, IaaS, and Fortinet partner supporting roughly 700 MSPs.
The company expanded its MSSP services in April 2022 to prevent, detect, and respond to malicious activities.
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