|SunGard to Buy Comdisco Services Unit|
ROSEMONT, Ill. (Reuters) - Computer leasing company Comdisco Inc. (NYSE:CDO) said on Friday it would sell its technology services business to SunGard Data Systems Inc. (NYSE:SDS) for $825 million after the financial services software company topped an earlier offer by Hewlett-Packard Co.(NYSE:HWP)
The deal for the services business, which helps companies do back-ups and prepare for potential disasters, came after a court-authorized auction and is subject to approval by U.S. Bankruptcy Court in Illinois on Oct. 23.
Rosemont, Illinois-based Comdisco, whose main business is leasing computers and equipment, said the SunGard bid was fully supported by the official unsecured creditors committee and equity committee.
Comdisco, hit by investment losses and working to manage a mountain of debt, filed for bankruptcy protection in July and said then that it would sell its services business to Hewlett-Packard for $610 million in cash. By the terms of that agreement, Comdisco said on Friday that the Hewlett-Packard offer remains open through Dec. 19.
In August, Wayne, Pennsylvania-based SunGard made a $775 million offer for the Comdisco technology services business, and also filed a legal objection to the bidding procedures proposed by Comdisco and Hewlett-Packard in Comdisco's bankruptcy proceedings.
Both Comdisco and SunGard have been providing disaster recovery services for corporations after the Sept. 11 attacks on New York and Washington.
``The exceptional skills of Comdisco's Availability Solutions staff have been more apparent than ever in the wake of the World Trade Center disaster,'' SunGard Chief Executive Officer James Mann said in a statement. ``The combination of our two businesses will ensure that there will be a strong independent vendor in this important industry.''
The sale to SunGard, which the companies are seeking to close as soon as possible after court approval, includes the purchase of assets of Comdisco's U.S. operations and the stock of its subsidiaries in Britain, France and Canada related to the business, known as Availability Solutions.
The sale excludes the purchase of the stock of subsidiaries in Germany and Spain, as well as other assets such as Network Services and IT CAP Solutions, Comdisco said.