REG-Unisys Corp: Unisys Acquires CompuGain™

UnisysAnnouncement

14/12/2021 14:35

Unisys Acquires CompuGain™, Expands Cloud and Infrastructure Capabilities

Acquisition deepens Unisys expertise in targeted, high-growth segments of the
cloud market

BLUE BELL, Pa. and HERNDON, Va., Dec. 14, 2021 /PRNewswire/ -- Unisys
Corporation
(https://c212.net/c/link/?t=0&l=en&o=3388731-1&h=2904053032&u=http%3A%2F%2Fwww.unisys.com%2F&a=Unisys+Corporation)
(NYSE: UIS), a global IT solutions company, today announced it 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'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."

Expanding cloud capabilities

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.

"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."

The purchase price is subject to customary adjustments based on closing cash,
indebtedness and working capital. For disclosures and definitions related to
any Unisys financial metrics referenced in the attached, including adjusted
EBITDA and FCF, please see the Unisys 3Q21 earnings release, available on the
company's website. Baird served as the exclusive sell side financial advisor
and Holland & Knight served as legal counsel to CompuGain.

In September 2021, leading global technology research and advisory firm
Information Services Group (ISG) recognized Unisys as a global leader
(https://c212.net/c/link/?t=0&l=en&o=3388731-1&h=137666878&u=https%3A%2F%2Fwww.unisys.com%2Fanalyst-report%2Funisys-recognized-by-isg-as-a-next-gen-private-hybrid-cloud-services-leader%2F&a=recognized+Unisys+as+a+global+leader)
for its cloud and infrastructure solutions in a Provider Lens™ report.

About Unisys

Unisys is a global IT solutions company that delivers successful outcomes for
the most demanding businesses and governments. Unisys offerings include
digital workplace solutions, cloud and infrastructure solutions, enterprise
computing solutions, business process solutions and cybersecurity solutions.
For more information on how Unisys delivers for its clients across the
commercial, financial services and government markets, visit www.unisys.com.

Follow Unisys on Twitter
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and LinkedIn
(https://c212.net/c/link/?t=0&l=en&o=3388731-1&h=1619299822&u=http%3A%2F%2Fwww.linkedin.com%2Fcompany%2Funisys&a=LinkedIn).

About CompuGain

CompuGain is an Amazon Web Services (AWS) Advanced Consulting Partner.
CompuGain has partnered with more than 35 Fortune 1000 Companies with
highly-regulated environments, delivering more than 1,500 projects to date.
CompuGain brings a team of more than 400 engineers, cloud solution architects
and developers providing consultation and implementation expertise in modern
application delivery, data services, micro-services and digital transformation
to achieve the next faster.

Forward-Looking Statements 

Any statements contained in this release that are not historical facts are
forward-looking statements as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are usually identified by or
are associated with such words as "intend," "plan," "believe," "estimate,"
"expect," "anticipate" and similar terminology. Such forward-looking
statements include those that address activities, events or developments that
Unisys or its management believes or anticipates may occur in the future,
including earnings enhancements, synergies and other benefits from the
CompuGain acquisition. All forward-looking statements are based upon Unisys'
current expectations, various assumptions and data available from third
parties. Unisys' expectations and assumptions are expressed in good faith, and
Unisys believes there is a reasonable basis for them. However, there can be no
assurance that such forward-looking statements will materialize or prove to be
correct as forward-looking statements are inherently subject to known and
unknown risks, uncertainties and other factors which may cause actual future
results, performance or achievements to differ materially from the future
results, performance or achievements expressed in or implied by such
forward-looking statements. Numerous risks, uncertainties and other factors
may cause actual results to differ materially from those set out in the
forward-looking statements, including: the risk that Unisys may be unable to
successfully integrate CompuGain or that integration costs exceed Unisys'
expectations; the risk that Unisys may not realize the benefits expected from
the acquisition, including earnings enhancements and synergies; potential
adverse reactions or changes to business or employee relationships, including
those resulting from the announcement of the acquisition; the risk that Unisys
may not attract, motivate and retain experienced personnel in key positions;
the risk that Unisys did not identify certain risks relating to the business
of CompuGain or underestimated the severity or probability of certain risks
relating to the business of CompuGain; the risk that Unisys may not
effectively anticipate and respond to volatility and rapid technological
innovation; the risk of adverse developments on Unisys' ability to grow
revenue and expand margin in its Digital Workplace Solutions and Cloud and
Infrastructure Solutions businesses; the risks of doing business
internationally, particularly when a significant portion of Unisys' revenue is
derived from international operations; the risk of cybersecurity breaches,
which could result in significant costs and harm Unisys' business and
reputation; and the other factors discussed in the Item 1A, "Risk Factors"
sections in Unisys' Annual Report on Form 10-K for the fiscal year ended
December 31, 2020 and in Unisys' Quarterly Report on Form 10-Q for the quarter
ended March 31, 2021, and in Unisys' other filings with the Securities and
Exchange Commission which are available at http://sec.gov. For any
forward-looking statements contained in this or any other document, Unisys
claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. Unisys
assumes no obligation to update or revise any forward-looking statements in
light of new information or future events except as required by law.

###

RELEASE NO.: 1214/9860

Unisys and other Unisys products and services mentioned herein, as well as
their respective logos, are trademarks or registered trademarks of Unisys
Corporation. Any other brand or product referenced herein is acknowledged to
be a trademark or registered trademark of its respective holder.

UIS-C

Contacts: Investors: Courtney Holben, Unisys, 215-986-3379,
courtney.holben@unisys.com; Media: Tony Buglione, Unisys, 215-274-1942,
tony.buglione@unisys.com



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