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DIGITAL COMPLETES ACQUISITION OF PHILIPS INFORMATION SYSTEMS DIVISION, AND CREATES NEW SME COMPANY IN EUROPE

DIGITAL COMPLETES ACQUISITION OF PHILIPS INFORMATION SYSTEMS DIVISION,
 AND CREATES NEW SME COMPANY IN EUROPE
 GENEVA, Switzerland, Nov. 11 /PRNewswire/ -- Digital Equipment Corporation (NYSE: DEC) today announced that it had completed its acquisition of the Information Systems Division of Philips Electronics, marking the culmination of discussions initiated by the two companies earlier this year.
 Strengthening its thrust into the $17 billion small and medium-sized enterprise (SME) market in Europe, Digital also announced that it will form a separate company, called Digital Equipment Enterprise (DEE), to manage its SME business activities within each country in Europe.
 With the formation of Digital Equipment Enterprise, one part of Digital's organization in Europe is now streamlined to serve the needs of the small and medium-sized customers. The other part of the organization, the established Digital subsidiary, is set up to handle large accounts and very complex information technology projects.
 The banking expertise and solutions acquired from Philips will be a key element in Digital's focus on large banking accounts. The SME products, expertise and strong services capabilities will form the heart of the new company.
 "With these steps, Digital has moved confidently into a leading position in the banking IT sector, and at the same time moved purposefully into the fast developing small and medium enterprise and desktop services part of the IT market," said Pier Carlo Falotti, president and chief executive officer of Digital Europe.
 "For a banking customer, Digital can now offer a much wider choice of solutions and expertise. For a small or medium-sized company, Digital will now deliver products and multivendor desktop services from a dedicated organization, geared to their particular needs. The advantage of Digital Equipment Enterprise is that it will operate with none of the constraints of a company set up to handle large, complex projects, but with access to that competence and expertise from its sister organisation." Strengthening Digital's position in banking and other industries
 Included in the acquisition is the full range of Philips retail banking software applications, hardware products, and services, covering image and document processing, financial transaction printers, cash dispensers, and self-service information terminals. These will be combined with Digital's traditional "back-office" strengths in networking and applications such as DECbank retail banking applications, DECtrade trading room systems, and Network Application Support (NAS).
 Digital will also develop the business opportunities in retail and distribution by combining its own activities with the Philips focus on systems integration in this area.
 "The banking industry sector is already a significant investment area for Digital," explained Per-Olof Loof, Digital's director of service industries business in Europe. "Digital is currently working with more than 2,000 banks worldwide, has systems operating in 90% of the world's automated exchanges, and has installed tens of thousands of trading seats."
 "We have built a solid foundation for our business in banking, and we intend to increase our participation in this sector, particularly in retail banking," continued Loof. "We aim to grow through strategic investments in complementary products, and industry expertise such as we have acquired from both Philips and Kienzle. We will direct our worldwide banking industry activities from Europe and include the Philips banking management organisation, BCFI." A major thrust into a $17 billion market
 The new company announced by Digital today, Digital Equipment Enterprise (DEE), represents Digital's approach to Europe's rapidly growing small and medium enterprise sector. It will take the form of a group of separate SME companies operating alongside Digital's existing subsidiaries in key countries in Europe. DEE will be responsible primarily for the SME market, working closely with value-added resellers (VARs), while Digital's existing subsidiaries will focus mainly on large accounts, working closely with its Complementary Solutions Organisations (CSOs).
 The creation of DEE will enable Digital to integrate the broad array of SME capabilities it gained through the acquisition of Philips Information Systems division and the formation of Digital-Kienzle Computer Systems in December 1990.
 By the end of November, Digital will have established Digital Equipment Enterprise companies in the U.K., Germany, France, Spain, Austria, Switzerland, Netherlands, Belgium, and Italy, with Scandinavia to follow. The process of integrating skills and products into these new companies across Europe is expected to be completed within the next 12 months. In each country, Digital's overall marketing strategy will be overseen by an advisory board comprised of senior managers from both the existing subsidiary and the local DEE company.
 "Digital Equipment Enterprise will be mainly a sales, marketing, and services company with around 70% of its business coming through indirect, value-added channels," said Wolfgang Jaeger, Digital's vice president of SME DD -- NE003 -- 2916 11/11/91 09:47 EST
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Publication:PR Newswire
Date:Nov 11, 1991
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