IBM and Dassault are said to set deal on software work

Article Abstract:

Computer-aided design and manufacturing (CAD/CAM) equipment vendor Dassault Systems USA, in an agreement with IBM, is expected to take over IBM-owned CAD/CAM software maker CADAM Inc. IBM, in return, will receive a small but unspecified share of Dassault. CADAM has long been a competitor of Dassault in the high-end CAD/CAM market, but has had little success. The move, which is expected to transfer 200 CADAM software developers for IBM RS/6000 workstations and mainframe computers to Dassault, is seen as way for IBM to relieve some of the problems associated with CADAM. The agreement will still leave IBM with two-thirds of its software operations, which includes the most profitable PC CAD/CAM division. The CADAM purchase will help expand French-owned Dassault's business, particularly within the US.

Computer related services, not elsewhere classified, Planning, Mergers, acquisitions and divestments, Business planning, CAD-CAM systems industry, Industry Analysis, Outlook, CAD/CAM, Cooperative Agreements, Takeovers, CADAM Inc., Dassault Systems USA

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Culture shock: story of an IBM unit that split off shows difficulties of change; Lexmark officials felt adrift after buy-out but pared red tape - and payroll; a hint of Big Blue's problems

Article Abstract:

Lexmark International Inc is a $1.8 billion office-machines company that emerged consequent to a leveraged buy-out of IBM's typewriter, laser-printer and office supplies businesses. Management problems encountered at Lexmark illustrate how difficult changes can be for workers infused with IBM's culture and management style. In fact, such problems will be even harder to overcome at IBM itself: IBM is 35 times larger than Lexmark; and IBM is not so directly affected by business and economic pressures as Lexmark. Various examples show how changes are being implemented at Lexmark. The history of IBM's negotiations with Clayton, Dubilier & Rice, the company that bought IBM's office-machines businesses, is briefly recounted.

Computer and Office Equipment, Computer peripheral equipment, not elsewhere classified, Management, Computer industry, Office equipment and supplies industry, Office equipment industry, Lexmark International Group Inc., Laser printers, Company Profile, Office Equipment, Management Style, Laser Printer, Typewriter, Psychological Issue, Resistance to Change, Typewriters

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