IBM, Washington Mutual extend PC services pact
March 15, 1999 05:03 PM
SOMERS, N.Y., March 15 (Reuters) - International Business Machines Corp. IBM on Monday said Washington Mutual Inc.WM , a banking company with 2,000 branches, would extend an existing 5-year, $533 million computer services pact into a 10-year deal.
Financial terms of the expanded deal were not disclosed.
The new 10-year agreement with IBM Global Services, the world's largest supplier of computer services, extends a contract originally signed in 1996 with Seattle-based Washington Mutual.
Under terms of the new deal, IBM Global Services will manage the office computer systems, including 36,000 workstations, located throughout Washington Mutual's growing network of 2,000 bank branches.
"With IBM's continued help, we anticipate strengthening our banking network and providing enhanced service for our customers," Liane Wilson, Washington Mutual executive vice president of corporate operations, said in a statement.
Since the original contract was signed three years ago, Washington Mutual has grown through acquisition from a banking company with assets around $20 billion to one with assets of more than $165 billion.
The latest acquisition of H.F. Ahmanson & Co. and its Home Savings of America unit will add about 13,000 workstations to the Washington Mutual network.
Washington Mutual, currently the eighth-largest U.S. banking company, operates savings and loan offices throughout the nation, with major bank networks in Washington, Oregon, California, Texas and Florida.
Late Monday afternoon, IBM stock was $1.94 higher to $179.94 in composite U.S. stock market trading. Washington Mutual was down 25 cents to $44.56.
((-- Eric Auchard, New York newsdesk, 212-859-1840)) REUTERS
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