Computer Firms Agree To Merge
Aug. 02, 1988
BOSTON (AP) _ Massachusetts Computer Corp. has agreed to buy the larger Concurrent Computer Corp. for $230 million, the two minicomputer makers have announced.
Although Westford, Mass.-based Masscomp is the purchaser, the resulting company will be named Concurrent Computer Corp., and James K. Sims, president and chief executive officer of Concurrent, will become chairman, president and chief executive of the merged company.
The deal, announced Monday, is expected to be completed late next month. It will create a company with about 3,600 employees and annual sales of about $350 million.
Both companies make computers used in flight simulators, lottery systems and manufacturing systems. They compete with such companies as Digital Equipment Corp. and Hewlett-Packard Co.
About 180 employees at Masscomp's manufacturing plant in Westford, Mass., are to be laid off. That plant will be closed by Jan. 1, and the work transferred to Concurrent plants in New Jersey and Ireland.
Masscomp now employs 660, and Concurrent 2,800.
Concurrent, based in Tinton Falls, N.J., had sales of $247.7 million last year. Masscomp had revenue of $74.6 million in its 1987 fiscal year.
The merger calls for Masscomp to buy all of Concurrent's 11.5 million shares for $20 a share, a total of $230 million.
Perkin-Elmer Corp. now owns 82 percent of Concurrent, and the Masscomp purchase will free the merged company of outside ownership.
Masscomp also is to assume $150 million to $170 million of Concurrent's debt.
Russell E. Planitzer, Masscomp president and chief executive, will become a board member.