Computing Pioneers Exit as Industry Transforms

Strategic Insights -

Wang Global, a services company formed by the 1998 merger of Wang Laboratories and Olivetti's IT services unit, has agreed to be bought by Getronics in a deal worth approximately $2 billion. This comes as Olivetti transforms into a telephone company through its hostile bid for Telecom Italia, worth $64 billion. Meanwhile, EDS has launched an e-business push, creating a new division with over 20,000 employees, and Misys is leveraging the internet to revamp its business.

Key Takeaways:

  • Wang Global, formed in 1998, will be acquired by Getronics in a $2 billion deal, creating the largest computer services provider in Europe with annual revenues of $5 billion and 33,000 employees.
  • Olivetti's shift towards telecommunications was facilitated by the 1998 sale of its IT services unit to Wang Laboratories, enabling the Italian company to focus on telecommunications.
  • EDS has created a new E-Business Solutions division with over 20,000 employees and expected 1999 revenue of more than $2 billion, about 10% of the company's total revenue.
  • Misys' online healthcare software business, acquired last year, will offer web-based services to GPs and patients, allowing for various transactions such as billing and ordering lab tests.
  • Dell, a PC vendor, reported a 42% rise in first-quarter net income to $434 million, with web-based sales accounting for 30% of overall revenue.

Statistics:

  • Wang Global's sale to Getronics is worth approximately $2 billion.
  • Getronics' acquisition of Wang Global will create the largest provider of computer services in Europe with annual revenues of about $5 billion and more than 33,000 employees.
  • EDS' new E-Business Solutions division has over 20,000 employees.
  • EDS' expected 1999 revenue for the e-business unit is more than $2 billion, representing about 10% of the company's total revenue.
  • Misys' online healthcare software business will offer services to over 65,000 general practitioners.
  • Dell's web-based sales accounted for 30% of overall revenue in the first quarter of 1999.
  • Dell's first-quarter net income rose 42% to $434 million.

Sources:

  • "Wang Global bought by Getronics" (Financial Times, Date missing)
  • "Olivetti cedes stake in Wang Global" (Financial Times, Date missing)
  • "EDS creates new e-business division" (Financial Times, Date missing)
  • "Misys profits boosted by Internet" (Financial Times, Date missing)
  • "Dell profit jumps" (Financial Times, Date missing)