Magazine article American Banker

Sungard to Acquire Investment Servicer

Magazine article American Banker

Sungard to Acquire Investment Servicer

Article excerpt

Sungard Data Systems Inc. agreed in principle last week to acquire Shaw Data Services Inc., a leading provider of portfolio management services to banks and other institutional investors.

Sungard, based in Wayne, Pa., could pay up to $35 million to acquire Shaw Data under the terms of the agreement. The acquisition is expected to close during the second quarter of 1992.

Sungard is a major supplier of support services for investment managers in the capital markets on a service-bureau basis.

"Providing investment support on a service basis is the largest part of Sungard's business, and it's a very fragmented market," said Richard C. Tarbox, vice president of corporate development at Sungard.

"Our strategy is to have something to offer to all managers of money, and Shaw Data fills in one piece, being the leading player in providing systems to investment advisers."

260 Customers

Under the terms of the proposed deal, Sungard will provide portfolio management, investment accounting, and performance measurement services to Shaw's 260 customers.

Shaw Data is the latest of a series of acquisitions in the investment support area for Sungard, which has rapidly expanded its investment support services to banks during the past few years. Since 1986, Sungard has acquired 15 companies.

Although Sungard is best known as a provider of disaster recovery services, its investment support services to banks and other institutional investors represented a much larger chunk of the company's $283 million in 1991 revenue. …

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