Wang Global today announced it has been bought for around $1.36 billion by Dutch Services company Getronics.
The services giant also today reported a net loss of $57.7 million, or $1.25 per share, for its first quarter ending 31 March 1999. Revenue for the quarter was $789 million.
The companies said the acquisition would create a $5 billion global services company, one of the largest in the world.
During the quarter the company recorded restructuring charges and integration related period costs of $51.5 million following its purchase of Olivetti's service arm Olsy.
Wang said progress towards its stated goal of $150 million to $200 million of cost savings remains on target and the company ended the period with consolidated cash balances of $182 million and total debt of $346 million.
Joseph Tucci, Wang chairman and chief executive said the company's growth had been boosted in the quarter by three contract wins valued at more than $100 million each. The most recent of these was a five year deal with Abbey National covering desktop outsourcing, help desk and hardware and software support.
In a separate statement, Wang announced that it has entered into an agreement to be acquired by services company Getronics that is based in Amsterdam.
The deal will be completed through a tender offer of $29.25, which has been approved by Wang's board of directors.
Tucci commented: "We are excited about today's announcement that Wang Global and Getronics will be joining forces to create a $5 billion global organisation, one of the five largest network and desktop services and business solutions companies in the world. Together we will have an even greater ability to meet the growing needs of all our customers."
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