Kyndryl Acquires Skytap, Sells SIS Division to Broadridge

IT infrastructure services provider Kyndryl has acquired workload services provider Skytap for an undisclosed amount.

Kyndryl, which trades on the New York Stock Exchange under the symbol KD, says the acquisition will expand its hybrid cloud services portfolio. 

This is technology M&A deal number 128 that ChannelE2E and MSSP Alert have covered so far in 2024. See more than 2,000 technology M&A deals for 2024, 2023, 2022, 2021, and 2020 listed here.

Kyndryl, founded in 2021, is based in New York City. The company has 56,753 employees listed on LinkedIn. Kyndryl’s areas of expertise include cloud services for public cloud and private cloud, enterprise data services, security & resiliency services, enterprise infrastructure services, digital workplace services, and infrastructure management for applications.

Skytap, founded in YEAR, is based in Seattle, Washington. The company has 161 employees listed on LinkedIn. Skytap’s areas of expertise include application modernization, agile development, software development and testing, enterprise cloud computing, cloud, cloud computing, DevOps, application modernization, cloud migration, virtual training labs, and demo and POCs.

Kyndryl will integrate Skytap’s capabilities for transitioning complex workloads to support hyperscaler environments into its own offering. This will help expand Kyndryl’s existing hybrid cloud services portfolio, according to the company. 

"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 Optimizes Portfolio by Selling SIS

Kyndryl also announced that it will sell its transaction processing platform for the securities brokerage industry in Canada, known as Securities Industry Services (SIS), to Broadridge Financial Solutions. Terms of the deal were not disclosed.

This is technology M&A deal number 129 that ChannelE2E and MSSP Alert have covered.

Broadridge Financial Solutions, founded in 2007 as a spin-off from management software company Automatic Data Processing. The firm is also based in New York City and has 222 employees listed on LinkedIn. Broadridge’s areas of expertise include communications, technology, data & analytics, finance, operations optimization, capital markets, banking, broker-dealer, wealth management, consumer markets, asset management, corporate issuer, customer engagement, customer experience, advisor tools, financial reporting, agent solutions, compliance and risk management, innovation and insights, and shareholder management.

Kyndryl says it will provide managed services and capabilities to Broadridge related to SIS following the sale.

Revenues generated by both Skytap and SIS over the last twelve months were less than 1% of Kyndryl's annual revenue, the company said. Kyndryl expects to show a profit from the SIS sale, but says these transactions will have no bearing on the outlook for its 2025 fiscal year.

Kyndryl plans to use the net proceeds from the two transactions for general corporate purposes.

The closing of the SIS transaction is pending regulatory approvals and other customary conditions.