Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Sequent -- Ignore unavailable to you. Want to Upgrade?

To: SeasideHeights who wrote (1220)	7/12/1999 11:26:00 AM
From: Ed Flynn	Read Replies (1) \| Respond to of 1229

Monday July 12 11:05 AM ET IBM Buys Sequent for %810 Million By DAVID E. KALISH AP Business Writer NEW YORK (AP) - IBM announced today it would pay $810 million for Sequent Computer Systems Inc. (Nasdaq:SQNT - news), a struggling maker of powerful business computers, in a cash deal that aims to fill an important slot in IBM's product line. Sequent is a leading seller of high-end computers and software that use Intel Corp.'s (Nasdaq:INTC - news) microprocessor chips. IBM, the world's largest computer maker, plans to use Sequent's specialized technology in networked machines it will pitch as an inexpensive substitute to traditional mainframes that handle the biggest computer jobs, such as tracking inventories or millions of bank transactions. Though Intel chips are not widely used as the brains in the heaviest-duty computers, that could change next year, when the No. 1 chip maker releases a long-awaited next-generation chip called Merced intended to work with big business machines. Despite Sequent's leading technology, the company has succeeded only in attracting a handful of big corporate customers. Its financial results have been viewed by Wall Street as mediocre. IBM already is allied with Sequent and Santa Cruz Operation Inc. (Nasdaq:SCOC - news) to produce a new version of the Unix operating system for Intel's high-powered Merced computer chip. That work helped spark IBM's interest in buying the company, said Robert Stephenson, an IBM senior vice president who heads its server division. IBM plans to sell Sequent's computers as well as integrate Sequent's technology into its own machines. Beaverton, Ore.-based Sequent has about 2,500 employees. No job cuts are expected. IBM will pay $18 cash for each of Sequent's outstanding shares, plus additional cash. It hopes to complete the transaction this summer. IBM shares were down $1.433/4 share at $135.933/4 on the New York Stock Exchange this morning. Sequent's shares were down 183/4 cents a share at $17.25 on the Nasdaq Stock Market.