Outsourcing solutions provider, BISYS has completed the sale of the companies that comprise its information services group to Open Solutions Inc.
BISYS estimates total proceeds from the sale of the information services sector, which brought in $212 million in revenues for 2005, to be approximately $470 million. Net proceeds after closing costs and the payment of taxes are expected to be approximately $300 million, which BISYS intends to use for the retirement of its convertible notes.
The company also expects to report a gain on the transaction in its third quarter fiscal 2006 financial statements.
“The sale of the Information Services group will allow us to strategically refocus our efforts on growing the Investment Services and Insurance Services businesses, where we see the greatest opportunities arising for BISYS, said Russ Fradin, BISYS president and CEO.
He adds that At the same time, we are pleased that our long-time technology partner Open Solutions, a leading provider of software and services to financial institutions, will continue to support the Information Service group’s client base and the banking and credit union marketplaces,