PHILIPS AND DIGITAL REACH FINAL AGREEMENT
ON TRANSFER OF INFORMATION SYSTEMS
GENEVA, Switzerland, Nov. 11 /PRNewswire/ -- Philips Electronics and Digital Equipment Corporation (NYSE: DEC) have reached final agreement on the sale of most of Philips' Information Systems Division to Digital, per Oct. 28, 1991.
The agreement covers the Division's activities for financial institutions, small and medium enterprises, image and document management systems, and all related customer service activities. Not included are Philips' activities in the field of dictation systems and smart card, nor the manufacturing activities in Eiserfeld (Germany) and Apeldoorn (The Netherlands). A total of approximately 7,000 employees will be transferred from Philips to Digital as a result of the agreement.
Hank Bodt, a member of Philips' Group Management Committee, who signed the contract on behalf of Philips, said that he was glad that talks with Digital had been concluded successfully. "We are convinced that the longer term interests of both our customers and our employees are better served with this deal. It also allows us to focus our efforts on the personal computer activities in the information technology market."
On behalf of Digital, the contract was signed by Pier Carlo Falotti, president and chief executive officer of Digital Europe. He said: "This agreement is a major element in Digital's move into a leading position in the banking IT sector, and the fast developing small and medium enterprise part of the IT market. The expertise and solutions acquired from Philips will also strengthen our overall service capabilities, particularly in systems integration and multivendor desktop services."
Philips and Digital today also reconfirmed their agreement to explore other possibilities for cooperation in such areas as document processing, imaging, personal computers, components, CD-I and other multimedia applications.
Digital Equipment Corporation, headquartered in Maynard, Mass., is the leading worldwide supplier of networked computer systems, software and services. Digital pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its partners deliver the power to use the best integrated solutions -- from desktop to data center -- in open information environments.
Philips electronics, with headquarters in Eindhoven, The Netherlands, is one of the world's largest electronics companies, with sales of USD 30,8 billion in 1990, and, as per Sept. 30, 1991, 250,200 employees worldwide. Its products include lighting, consumer electronics, components, semiconductors, personal computers, communications systems, medical systems, industrial electronics and domestic appliances and personal care products. Its shares are traded on 19 stock exchanges in the world, including the New York Stock Exchange, and the Stock Exchanges in Tokyo, London, and Amsterdam.
/CONTACT: Cor Vreven, 31-40-75-70-05 or Jack Reemers, 31-40-75-72-67, both of Philips Press Office (Eindhoven, The Netherlands); Gordon Moultrie, 41-22-709-4432 or Rolf Espen Olsen, 41-22-709-4396 both of Digital Equipment Corporation (Geneva, Switzerland); or Mark Fredrickson, 508-493-4930 Digital (U.S. contact)/
(DEC) CO: Digital Equipment Corporation ST: Massachusetts IN: CPR SU: KM -- NE004 -- 2920 11/11/91 09:55 EST