Kyndryl announces portfolio optimization actions

NEW YORK, May 13, 2024 – Kyndryl (NYSE: KD), the world’s largest provider of IT infrastructure services, today announced the acquisition of Skytap, a leading provider of specialized workload services.

“The acquisition of Skytap reflects the proactive steps we are taking to invest in our critical capabilities where our global alliances and innovations enable us to help our customers transform and grow,” said Dave Simpson, global head of cloud practices at Kyndryl. .

Kyndryl’s acquisition of privately held Skytap will expand the company’s portfolio of hybrid cloud services. Skytap’s innovative technologies will be combined with Kyndryl’s expertise to help customers use cloud-native services to accelerate the adoption of advanced analytics, artificial intelligence, development, security and operations (DevSecOps). Skytap is recognized for its uniquely powerful capabilities in transitioning complex workloads to support hyperscaler environments. Skytap’s technologies enable customers to move and run their critical systems in the public cloud with minimal changes.

Additional portfolio optimization

Kyndryl also announced that it has entered into a definitive agreement to divest its transaction processing platform for the Canadian securities industry, known as Securities Industry Services (SIS), to Broadridge Financial Solutions, Inc. Kyndryl has l The intention to provide managed services and capabilities for Broadridge linked up with SIS following the divestiture.

Revenue generated by Skytap and SIS over the past twelve months represented less than 1% of Kyndryl’s annual revenue. Although Kyndryl expects to record a transaction-related gain (excluded from its adjusted results) in connection with the SIS divestiture, the transactions have no impact on Kyndryl’s fiscal 2025 outlook, which has was provided on May 7, 2024. The Company intends to use the net proceeds from both transactions for general corporate purposes.

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 provider of IT infrastructure services, serving thousands of enterprise customers in more than 60 countries. The company designs, builds, manages and modernizes the complex and critical information systems that the world depends on every day. For more information, visit www.kyndryl.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements often contain words such as “will”, “anticipates”, “predicts”, “project”, “plan”. “, “forecast”, “estimate”, “expect”, “intend”, “target”, “may”, “should”, “would”, “could”, “outlook”, “objective” and other similar words or expressions or the negative thereof or other variations thereof All statements, other than statements of historical fact, including, without limitation, statements representing plans and beliefs. of the Company regarding future events, transactions, strategies, operations and financial results, may be forward-looking statements. These statements are not guarantees of future performance and speak only as of the date of this press release. as required, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ materially from those suggested by forward-looking statements due to 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 Securities and Foreign Exchange Commission.

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