USY Unisys Corporation

 
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 
 
 

(END) Dow Jones Newswires

December 14, 2021 09:32 ET (14:32 GMT)

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