Soaring energy costs and an impasse with landlords over rents have forced the British arm of a major international data management operator into administration.
Sky News understands that Sungard's UK operations, which operate services for clients including JP Morgan and the Home Office, have called in Teneo Restructuring in an attempt to salvage its future.
The business, which employs nearly 300 people, provides cloud-based services as well as physical data centres, demand for which was hit by the COVID-19 pandemic.
Sources said landlords' refusal to agree to rent cuts had prompted the decision by Sungard's directors to call in administrators, with soaring energy prices having a material impact on its finances.
Customers are understood to have been notified about the move on Monday.
Sungard Availability Services UK - the entity which has gone into insolvency - is said to have been in talks with landlords since the start of the year, but had been unable to reach an agreement about improved payment terms.
Teneo is understood to have obtained interim funding to trade the business, with discussions taking place with potential buyers on an accelerated basis.
The identities of interested parties was unclear on Monday.
Benji Dymant, joint administrator at Teneo, said in a statement issued to Sky News, that the short-term funding "provides a platform to advance the company's discussions with landlords, to optimise cost and space, and with customers, to pass through increased power costs".
"The ability for the business to continue to trade in the medium to long term, either to enable a rescue of the business as a going concern or to deliver individual asset sales, will be reliant upon burden sharing from both customers and landlords alike, he added.
Sungard could not be reached for comment.