Singapore Exchange Mainboard listed Silverlake Axis Ltd, a leading provider of Digital Economy Solutions and Services to major organisations in Banking and Financial Services, Payments, Retail and Logistics businesses, is buying SunGard Ambit (Singapore) Pte. Ltd, (“SAS”), for US$12 million to expand its suite of software and services as well as deepen and broaden its customer relationships and geographical presence.
Under the terms of the agreement, Silverlake Axis will acquire 100 percent of the equity of SAS from SunGard Asia Pacific Inc.
SAS brings a complementary retail banking portfolio of software and service solutions to the Group’s strengths in delivering financial technology innovation to our customers. In particular, the SAS Retail Banking Product Portfolio positions Silverlake Axis for mid-tier customers while offering a broader variety of tiered deployment options from a technology and a pricing perspective.
Through this acquisition, Silverlake Axis will further expand its software and services offerings to empower customers in accelerating their digital transformation. In addition, the Group will add more than 50 new customers to its current base of over 150 customers, extending its geographical reach to Eastern Europe, Middle East, South Asia while at the same time creating a stronger market leadership in South East Asia.
The consideration of US$12 million is on a willing-buyer willing-seller basis and shall be paid in cash on completion, subject to certain working capital and net assets/liabilities adjustments. On an immediate basis, the acquisition is expected to contribute approximately 15% to the revenue of the enlarged Silverlake Axis Group. While cost synergies will be identified and implemented following the acquisition, revenue synergies will be created from the cross selling of software and services to each other’s customers.
Commenting on the transaction, Dr Raymond Kwong, Silverlake Axis CEO and Group Managing Director, said, “The Group is constantly on the lookout for complementary software businesses to expand our suite of business enterprise software solutions. Through this acquisition, the combined and complementary multi-platform core, channels, card and payment solutions will enable us to deepen our customer solution implementation and support capabilities. This investment will position Silverlake Axis to play a leading role in Digital Financial Technology adoption and innovation across an expanded market space leveraging on the combined portfolio of software and knowledge assets”.
Dieter Kaeslin, COO of SunGard’s Retail Banking business expressed, “SunGard has always been focused on driving our businesses in a direction which delivers more value to our clients. We believe that this transaction fulfils this purpose, and is the best outcome for our Retail Banking customers and employees.”
