SunGard Higher Education to merge with Datatel in $1.7B deal, no word on jobs impact

Philadelphia Business Journal – by Peter Key , Staff Writer

Date: Friday, August 5, 2011, 10:19am EDT

SunGard Data Systems Inc. will sell its SunGard Higher Education business for $1.78 billion in cash to affiliates of private-equity firm Hellman & Friedman LLC .

Hellman will combine it with Datatel, a developer of software for colleges and universities that it already owns.

Hellman, which has offices in San Francisco, New York and London, said Friday it plans to give the combined companies a new name when the transaction closes.

Datatel CEO John Freer will be the CEO of the combined business. SunGard Higher Education CEO Ron Lang will be vice chairman of the new company’s board of directors.

The press release by Fairfax, Va.-based Datatel and Malvern, Pa.-based SunGard Higher Education didn’t say where the new company will be based.

It also didn’t say if the combined businesses, which employ more than 3,000, plan to reduce their head count.

If it closes, the sale will be the first major action taken by SunGard Data Systems since Russell Fradin succeeded Cristóbal Conde as the Wayne, Pa.-based software-and-services company’s CEO at the end of May.