Acquisition deepens Unisys expertise in targeted, high-growth segments of the cloud market
Unisys Corporation, a global IT solutions company, has acquired leading cloud solutions provider CompuGain for $87.3 million on a cash-free, debt-free basis.
CompuGain’s capabilities in application modernization, cloud-native agile application development and cloud and hybrid cloud data management, including its designation as an Amazon Web Services (AWS) Advanced Consulting Partner, will deepen Unisys’ cloud offerings. The company brings more than 400 engineers, cloud solution architects and developers.
Unisys funded the transaction, which closed concurrently with the signing of the acquisition agreement, with cash on hand. CompuGain generated $58 million of revenue for the 12-month period ending September 30, 2021, up 12% year over year, with more than 90% of its revenue from client relationships with an average tenure of greater than nine years. Unisys expects the transaction to be immediately accretive to adjusted EBITDA and free cash flow (FCF).
“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.”
CompuGain capabilities will deepen Unisys’ cloud expertise and its ability to:
Deliver rapid and agile cloud migration. CompuGain brings an agile development process and customizable frameworks for both applications and Infrastructure as a Service (IaaS). Coupled with Unisys’ expertise in hybrid cloud and cloud optimization services, the enhanced capabilities will help clients achieve faster and more reliable digital transformation.
Modernize applications. The integration of Unisys and CompuGain addresses the rising need for cloud-native capabilities such as micro-services and micro-application deployment. These capabilities give clients the power to create new, software-based tools and services that align with business strategy, automate processes and reduce operational cost.
Realize data value. CompuGain brings capabilities to help clients improve data governance, store and manage data with enterprise data lakes to eliminate data silos and unlock the full potential of their enterprise data and applications.
Enhance public cloud skill sets. CompuGain enhances Unisys’ significant cloud capabilities. Among its other accreditations, CompuGain is an AWS Advanced Consulting Partner. Its competencies across public cloud platforms include serverless technologies, data lakes, containers, machine learning and DevSecOps, as well as application and data architecture for cloud environments.
“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, 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.”