IBM is selling rest of Rolm to Siemens AG

Article Abstract:

IBM Corp will sell its remaining 50 percent stake in Rolm Co to partner Siemens AG. IBM purchased Rolm, a maker of telecommunications switching equipment, in 1984 for $1.5 billion. The move appeared sound at the time because of the convergence of the computer and communications industries, but Rolm did not perform well for IBM in the competitive market, and IBM decided to sell half the company to Siemens for $844 million in 1989. Neither company would reveal the value of the sale of the remainder of Rolm. IBM will continue to work with Rolm and Siemens by supplying software to work with the switching equipment. Likewise, IBM will continue to market products from both Rolm and Siemens.

Electronic computers, Prepackaged software, Electronic parts and equipment, Electrical repair shops, not elsewhere classified, Telecommunications equipment industry, ROLM Co.

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IBM to set up office products business as separate line, clearing way to sale

Article Abstract:

IBM will spin off its low-tech office products division into a subsidiary unit in a move preliminary to its sale to Clayton and Dubilier in a leveraged buy-out. Details of the transaction have not been released, but it is estimated to be worth $2.3 billion. The office products portion of IBM brought the company between $2.5 billion and $3 billion in revenue in 1989. The move will enable IBM to eliminate almost 6,000 employees from its payroll, as well as allowing it to focus more intently on its core computer business. The office products division, headed by typewriter sales, and including keyboards, printers and office-supplies, has remained profitable through the years.

Office equipment, Office equipment and supplies industry, Organization Structure, Subsidiary Company, Clayton & Dubilier Inc.

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IBM, Siemens complete deal on Rolm unit

Article Abstract:

Siemens AG will finally take over the majority of Rolm Corp, a telecommunications subsidiary of IBM. The deal was supposed to have been complete in early 1989, but complications regarding international operations dragged out negotiations between the two multinational companies. IBM meanwhile expanded and enhanced its Rolm product line, partly in an attempt to assuage customers' fears that the company would abandon them. IBM will offer expanded features in its NetView network manager, including increased compatibility with non-IBM equipment.

Telephone and telegraph apparatus, Telecommunications services industry, Telecommunications industry, Management, Telecommunications, Rolm Corp.

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