Acquires privately held Skytap to
accelerate hybrid cloud adoption and help customers
modernize mission-critical infrastructure platforms
Announces definitive agreement to sell its
Securities Industry Services business in
Canada to Broadridge to enhance
Kyndryl's focus on core growth areas
NEW
YORK, May 13, 2024 /PRNewswire/
-- Kyndryl (NYSE: KD), the world's largest IT
infrastructure services provider, today announced that it has
acquired privately held Skytap, a leading specialized workload
services provider.
"The acquisition of Skytap reflects the proactive steps we're
taking to invest in our mission-critical capabilities where our
global alliance partnerships and innovation enable us to help our
customers transform and grow," said Dave
Simpson, Global Practice Leader for Cloud at Kyndryl.
Kyndryl's acquisition of privately held Skytap will expand
the Company's hybrid cloud services portfolio. Skytap's innovative
technologies will be combined with Kyndryl's expertise in helping
customers utilize cloud native services to accelerate the adoption
of advanced analytics, artificial intelligence and development,
security and operations (DevSecOps). Skytap is recognized as having
particularly strong capabilities for transitioning complex
workloads to support hyperscaler environments. Skytap's
technologies enable customers to move and run their
mission-critical systems in the public cloud with minimum
change.
Additional Portfolio Optimization
Kyndryl also announced that it has entered into a definitive
agreement to divest its transaction processing platform for the
securities brokerage industry in Canada, known as Securities Industry Services
(SIS), to Broadridge Financial Solutions, Inc. Kyndryl intends to
provide managed services and capabilities to Broadridge related to
SIS following the divestiture.
Revenues generated by both Skytap and SIS over the last twelve
months were less than 1% of Kyndryl's annual revenue. While Kyndryl
expects to record a transaction-related gain (excluded from its
adjusted results) in conjunction with the SIS divestiture, the
transactions have no impact on Kyndryl's fiscal year 2025 outlook,
which was provided on May 7, 2024.
The Company intends to use the net proceeds from the two
transactions for general corporate purposes.
Terms of the transactions were not disclosed. Closing of the SIS
transaction is subject to customary closing conditions, including
required regulatory approvals.
About Kyndryl
Kyndryl (NYSE: KD) is the world's
largest IT infrastructure services provider, serving thousands of
enterprise customers in more than 60 countries. The Company
designs, builds, manages and modernizes the complex,
mission-critical information systems that the world depends on
every day. For more information, visit www.kyndryl.com.
Media Contact
press@kyndryl.com
Forward-Looking Statements
This press release
contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Such
forward-looking statements often contain words such as "will,"
"anticipate," "predict," "project," "plan," "forecast," "estimate,"
"expect," "intend," "target," "may," "should," "would," "could,"
"outlook," "goal" and other similar words or expressions or the
negative thereof or other variations thereon. All statements, other
than statements of historical fact, including without limitation
statements representing the Company's plans and beliefs about
future events, transactions, strategies, operations and financial
results, may be forward-looking statements. These statements do not
guarantee future performance and speak only as of the date of
this press release. Except as required by law, the Company assumes
no obligations to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
Actual outcomes or results may differ materially from those
suggested by forward-looking statements as a result of risks and
uncertainties including those described in the "Risk Factors"
section of the Company's most
recent Annual Report on Form 10-K filed with the
Securities and Exchange Commission.
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SOURCE Kyndryl