Short Take: GE unit to sell business to IBM

General Electric's GE Capital Services has agreed to sell its commercial data center's outsourcing business to IBM's Global Services unit for an undisclosed sum. IBM will manage the data center and network operations, but GE will retain its far larger desktop computer services business. Although financial terms were not disclosed, the deal calls for IBM to hire nearly all 590 employees affected by the sale.

March 4, 1998 11:45 a.m. PT

GE Capital Services has agreed to sell its commercial data center's outsourcing business to IBM's Global Services unit for an undisclosed sum. IBM will manage the data center and network operations, but GE will retain its far larger desktop computer services business. Although financial terms were not disclosed, the deal calls for IBM to hire nearly all 590 employees affected by the sale.