Wang, Olivetti in services deal

Wang announces plans to purchase a subsidiary of Italian computer maker Olivetti, in a deal worth $390 million.

Wang (WANG) announced plans to purchase Olsy, a subsidiary of Italian computer maker Olivetti , in a deal worth $390 million.

As a result of the agreement, a new company will be created called Wang Global, which will provide network and desktop information technology packages. Combined, the two companies will have $3.6 billion in annual revenues.

After the agreement, expected to close by the end of March, all of the information technology services of Olivetti will be carried out through Wang Global, except the operations of OIS, a systems and services company active in the public administration sector in Italy, and Olivetti Sanit, which serves the healthcare market.

The deal gives Wang a European distributor that develops and manages IT solutions for enterprise customers, largely in the banking, retail, and utility industries. It also bolsters the company's services operations, building on Wang's recent acquisition of I-Net , an outsourcing and systems integration company.

Wang has refocused on becoming a network and desktop integration and services company, and as part of that transformation earlier this year sold its software business unit to Kodak in a deal worth $260 million.

Wang Global will be a Microsoft partner, meaning it will train Microsoft certified engineers and developers. It will also run twelve Microsoft support centers. It will have a similar partnership with Cisco Systems.

Wang is also negotiating with its bank group to expand lines of credit from $255 million to approximately $500 million in order to support the development of the new company.

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