Kyndryl Announces Portfolio Optimization Actions
Rhea-AI Summary
Kyndryl, the world's largest IT infrastructure services provider, announced the acquisition of Skytap to enhance hybrid cloud adoption and the sale of its Securities Industry Services business in Canada to Broadridge to focus on core growth areas. The acquisitions aim to modernize mission-critical infrastructure platforms and accelerate advanced analytics, artificial intelligence, and cloud services adoption. Both acquisitions accounted for less than 1% of Kyndryl's annual revenue, with no impact on the fiscal year 2025 outlook.
Positive
Acquisition of Skytap to expand hybrid cloud services portfolio and accelerate cloud adoption
Acquisition of Skytap to enhance advanced analytics, artificial intelligence, and development capabilities
Divestiture of Securities Industry Services business in Canada to focus on core growth areas
Expected transaction-related gain from the divestiture of SIS business
Proceeds from transactions to be used for general corporate purposes
Negative
Revenues generated by Skytap and SIS accounted for less than 1% of Kyndryl's annual revenue
No impact on Kyndryl's fiscal year 2025 outlook from the transactions
News Market Reaction 1 Alert
On the day this news was published, KD declined 3.37%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
"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
Revenues generated by both Skytap and SIS over the last twelve months were less than
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
FAQ
What did Kyndryl announce?
Kyndryl announced the acquisition of Skytap and the sale of its Securities Industry Services business in Canada.
What is the impact of the acquisitions on Kyndryl's revenue?
The revenues generated by Skytap and SIS accounted for less than 1% of Kyndryl's annual revenue.
What will Kyndryl do with the proceeds from the transactions?
Kyndryl intends to use the net proceeds for general corporate purposes.
Who is Kyndryl?
Kyndryl is the world's largest IT infrastructure services provider.
What sectors will Kyndryl focus on after the sale of SIS business?
Kyndryl will focus on core growth areas following the sale of its Securities Industry Services business in Canada.
