SunGard Higher Education buyout/merger to be funded with new debt

By Sara Rosenberg

New York, Aug. 10 - Sophia LP has received a debt financing commitment to help fund the acquisition of SunGard Higher Education by Hellman & Friedman LLC and the concurrent merger with Datatel Inc., according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on the financing.

Under the agreement, Hellman & Friedman is buying SunGard Higher Education from SunGard Data Systems Inc. for $1.775 billion in cash.

Once SunGard Higher Education is merged with Hellman & Friedman's existing portfolio company, Datatel, the combined company will operate under a new name that will be announced by the parties at the closing of the transactions.

Closing is subject to customary conditions, including applicable regulatory clearances. It is not subject to a financing condition or receipt of any stockholder approvals.

SunGard Higher Education is a Malvern, Pa.-based provider of software and services to the higher education community. Datatel is a Fairfax, Va.-based provider of technology products, services and insight to higher education.

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