Global IT solutions company Unisys has acquired cloud solutions provider CompuGain for $87.3 million on a cash-free, debt-free basis. CompuGain has engaged with more than 35 Fortune 1000 businesses with highly regulated settings as an Amazon Web Services (AWS) Advanced Consulting Partner, delivering more than 1,500 projects to date.
CompuGain’s expertise in application modernization, cloud-native agile application development, and cloud and hybrid cloud data management, as well as its status as an AWS Advanced Consulting Partner will complement Unisys’ cloud services. CompuGain brings more than 400 engineers, cloud solution architects and developers to the Unisys organization.
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“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.”
Unisys used cash on hand to fund the deal, which was completed simultaneously with the signing of the acquisition agreement. The acquisition price is subject to customary adjustments based on cash, debt, and working capital at the time of closing.
For the 12-month period ended September 30, 2021, CompuGain produced $58 million in sales, increasing 12% year over year, with more than 90% of its income coming from customer relationships with an average duration of more than nine years. The deal is expected to be immediately accretive to adjusted EBITDA and free cash flow, according to Unisys.
“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 of 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 for Unisys
“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.”
CompuGain’s cloud capabilities would deepen Unisys’ cloud expertise and its ability to:
- Deliver rapid and agile cloud migration – For both applications and Infrastructure as a Service, CompuGain would offer an agile development approach and configurable frameworks (IaaS). The improved capabilities, when combined with Unisys’ expertise in hybrid cloud and cloud optimization services, would enable clients to accomplish faster and more reliable digital transformation.
- Modernize applications – Unisys and CompuGain have teamed together to meet the growing need for cloud-native features like microservices and micro-application deployment. Clients may use these skills to develop new software-based products and services that correspond with their company strategy, automate processes, and save operational costs.
- Realize data value – CompuGain’s strengths include the ability to assist clients enhance data governance, store and manage data using corporate data lakes, and eliminate data silos so that their enterprise data and applications may reach their full potential.
- Enhance public cloud skill sets – CompuGain would complement Unisys’ extensive cloud capabilities. CompuGain is an AWS Advanced Consulting Partner, among other certifications. Serverless technologies, data lakes, containers, machine learning, and DevSecOps, as well as application and data architecture for cloud environments, are among its competences across public cloud platforms.