Getronics To Purchase Wang Global
BILLERICA, Mass. (AP) _ Wang Global is being acquired by Dutch computer services company Getronics NV in a $2 billion cash deal.
Under terms of the agreement announced today, Getronics will purchase Wang for $29.25 a share, which represents a 15 percent premium above the $25.50 Wang closed at Monday on the Nasdaq Stock Market.
The combined company is expected to have annual revenues of about $5 billion with 33,000 employees and operations in more than 44 countries.
Officials said in a statement the new entity will be the largest provider of networked technology services and business solutions in Europe and one of the five largest in the world.
Wang Global, which officially is known as Wang Laboratories Inc., designs and operates computing and telecommunications networks worldwide. The Billerica-based company has annualized revenues of $3.5 billion
Getronics had $1.65 billion in revenue in 1998.
The deal marks another chapter in the history of Wang, which used to be the leading U.S. manufacturer of minicomputers in the 1980s.
However, as the industry moved to networked, and then desktop personal computers Wang suffered heavy losses, finally filing for bankruptcy in 1992.
The company emerged from bankruptcy the following year with a new business focus: setting up, maintaining and helping companies run computer networks.
News of the merger comes after Wang announced results of its first quarter ended March 31. The company posted a net loss of $57.7 million, or $1.25 per share, for the quarter on revenues of $789 million.