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Computer peripherals industry

SunRiver Data Systems Completes Acquisition of Digital Equipment Corp's Text Terminal Business

Strategic Insights

— 1 min read

SunRiver Data Systems, a leading provider of desktop display devices, has completed the acquisition of Digital Equipment Corp's (DEC) text terminal business, including the popular VT and Dorio text terminal lines. This purchase marks a significant expansion for SunRiver, making it one of the two largest manufacturers of text terminals in the world. The acquisition complements SunRiver's existing text products and enables the company to meet the needs of a variety of new customers.

Key Takeaways:

  • SunRiver Data Systems has acquired Digital Equipment Corp's text terminal business, including the VT and Dorio text terminal lines.
  • The combined installed user base for SunRiver and Digital text terminals exceeds 5 million units.
  • The acquisition was funded through a credit facility provided by The Chase Manhattan Bank, N.A. and the sale of Common Stock of All-Quotes, Inc.
  • SunRiver plans to expand its sales, marketing, operational, and manufacturing staff in North America and Europe.
  • A European headquarter office is being established in The Netherlands, with satellite sales offices throughout Europe.
  • Marketing of the VT and Dorio lines will be intensified through current distribution partners.
  • SunRiver will maintain its current distribution channels for manufacturing and distributing VT and Dorio terminals.
  • Digital Equipment Corp will continue to supply its Digital branded VT and Dorio product lines to its direct customers under a four-year supply agreement.
  • Digital will also provide worldwide warranty service for these products as well as for VT and Dorio products manufactured by SunRiver.

Statistics:

  • Combined installed user base for SunRiver and Digital text terminals: 5 million units.
  • Number of new customers that SunRiver can meet the needs of: variable, but expanded product offering enables meeting the needs of a variety of new customers.
  • Number of employees in North America and Europe to be added: not specified, but healthy expansion expected.
  • Supply agreement between Digital and SunRiver: four-year term.
  • Warranty service coverage: worldwide.

Sources:

  • BUSINESS WIRE, October 24, 1995
  • Nasdaq: ALQT
  • New York Stock Exchange (NYSE): DEC
  • SunRiver Data Systems, Inc.
  • Digital Equipment Corp.

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