Comdisco Sells Mainframe Leasing Business to IBM Credit Corp.

Equipment leasing Equipment Leasing is a financing option to lease equipment for a certain amount of time. Leasing Benefits

Control secondary market, offer the ability to up-grade and trade-in.
Converts cash buyers of small machines to larger, more expensive purchases.

and services firm Comdisco Inc said yesterday that it had reached an agreement in principle to sell its mainframe leasing business to IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Credit Corp. Financial terms of the deal were not disclosed. The sale of the portfolio comes as Comdisco is divesting itself of non-core businesses as it shifts it focus on the higher-margin, higher-growth IT services businesses.

Comdisco said it expects the deal to close during its third fiscal quarter ending June 30, 1999, pending a definitive agreement and regulatory approval. The company says its services business now has a backlog Backlog

The total value of sales orders waiting to be fulfilled.

Notes:
This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of more than $1bn in contracts. Comdisco said in March that it would exit the mainframe residual leasing business and sell its vendor lease portfolio. It says it will continue to provide mainframe customers with consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.)
service - work done by one person or group that benefits another; "budget separately for goods and services" and will continues to lease PCs and servers, electronics, communications, scientific and medical equipment.

COPYRIGHT 1999 Datamonitor
No portion of this article can be reproduced without the express written permission from the copyright holder.

Reader Opinion

Article Details
Printer friendly Cite/link Email Feedback
Publication:	Computergram International
Geographic Code:	1USA
Date:	May 4, 1999
Words:	146
Previous Article:	Ceridian Buys Fellow Information Services Firm for $750m.
Next Article:	CNet Acquires Sumo for $28m.
Topics:	Commercial finance companies Computer leasing

Related Articles
Round up wayward data: corraling the resources of Wrangler & other clothing units.
Technological obsolescence may result in reduced personal property tax assessments.
IBM SAID TO BE BUYING UP SKYLINES TO INSTALL G5S.
COMDISCO PROMISES TO RE-ENGINEER CONTINUITY BUSINESS.
COMDISCO OFFERS LEASE-BACK DEALS TO JAPAN CHIP MAKERS.
PONTIKES TAKES THE HELM AT COMDISCO.
IBM CREDIT CHOPS MAINFRAME COMMISSIONS.
MAINFRAME PRICES CONTINUE TO IMPLODE.
Comdisco Exits Mainframe Leasing, Acquires Prism.
COMDISCO SELLS MAINFRAME LEASING PORTFOLIO TO IBM CREDIT CORP.