Bankruptcy Court Approves Sale of Comdisco's Availability Solutions
📅 - Comdisco, Inc. (comdisco.com) has announced that, at the conclusion of a three day hearing in the U.S. Bankruptcy Court for theNorthern District of Illinois, Judge Ronald Barliant approved the sale ofComdisco's Availability Solutions (Technology Services) business to Wayne,Pennsylvania-based SunGard Data Systems Inc. (sungard.com) for $825 million.
Closing of the transaction will occur as soon as possible, subject to afavorable ruling by the United States District Court for the District ofColumbia in the antitrust case filed against Comdisco and SunGard by theU.S. Department of Justice on Oct. 22, 2001. All proceedings in that casewere also completed, and the parties are awaiting the District Court'sruling, which is expected by Nov. 15, 2001.
Norm Blake, chairman and CEO of Comdisco, said, "We are very pleased thatthe Court today approved our motion filed at the commencement of our chapter11 reorganization cases to sell our Availability Solutions business. We havebeen working closely with SunGard since the summer to successfully resolvethe antitrust situation and we expect to continue to work closely with themto ensure a seemless transition for our customers and employees. We are alsopleased that the Court today clearly found that our Availability Solutionssale is in the best interests of our stakeholders and that our companyexercised all appropriate business judgment in reaching this outcome."
On July 16, 2001, Comdisco announced that it had entered into an agreementto sell the Availability Solutions business to Hewlett-Packard Company(hp.com) for $610 million and, with 50 of its domestic U.S. subsidiaries, commenced voluntary chapter 11 reorganization cases. The HP bid was subject to higher or otherwise better offers in a Court-authorized auction process approved on August 9, 2001. Following an auction held on Oct. 11, 2001, SunGard's $825 million offer had been selected by Comdisco as the highest or otherwise best offer. On Oct. 23, 2001, following commencement of the DOJ antitrust litigation and the receipt of an unsolicited increased bid from HP in the amount of $750 million supported by Comdisco's Official Committee of Unsecured Creditors, Comdisco announced that it would present both the HP and SunGard transactions to the Bankruptcy Court at the sales hearing completed today.
At the hearing, the Bankruptcy Court ruled in favor of the SunGard bidbecause the Court found that HP's $750 million offer was submitted outsidethe auction process and not in accordance with the Court-approved biddingprocedures.
Closing of the transaction will occur as soon as possible, subject to afavorable ruling by the United States District Court for the District ofColumbia in the antitrust case filed against Comdisco and SunGard by theU.S. Department of Justice on Oct. 22, 2001. All proceedings in that casewere also completed, and the parties are awaiting the District Court'sruling, which is expected by Nov. 15, 2001.
Norm Blake, chairman and CEO of Comdisco, said, "We are very pleased thatthe Court today approved our motion filed at the commencement of our chapter11 reorganization cases to sell our Availability Solutions business. We havebeen working closely with SunGard since the summer to successfully resolvethe antitrust situation and we expect to continue to work closely with themto ensure a seemless transition for our customers and employees. We are alsopleased that the Court today clearly found that our Availability Solutionssale is in the best interests of our stakeholders and that our companyexercised all appropriate business judgment in reaching this outcome."
On July 16, 2001, Comdisco announced that it had entered into an agreementto sell the Availability Solutions business to Hewlett-Packard Company(hp.com) for $610 million and, with 50 of its domestic U.S. subsidiaries, commenced voluntary chapter 11 reorganization cases. The HP bid was subject to higher or otherwise better offers in a Court-authorized auction process approved on August 9, 2001. Following an auction held on Oct. 11, 2001, SunGard's $825 million offer had been selected by Comdisco as the highest or otherwise best offer. On Oct. 23, 2001, following commencement of the DOJ antitrust litigation and the receipt of an unsolicited increased bid from HP in the amount of $750 million supported by Comdisco's Official Committee of Unsecured Creditors, Comdisco announced that it would present both the HP and SunGard transactions to the Bankruptcy Court at the sales hearing completed today.
At the hearing, the Bankruptcy Court ruled in favor of the SunGard bidbecause the Court found that HP's $750 million offer was submitted outsidethe auction process and not in accordance with the Court-approved biddingprocedures.
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