SAN FRANCISCO — In a bid to become a full-service supplier, Tandem Computers said Tuesday that it will acquire another Silicon Valley company, Ungermann-Bass Inc., for about $260 million.
Ungermann-Bass stock shot up on the over-the-counter market after the news was announced, rising $3.625 a share to $12.125.
Santa Clara-based Ungermann-Bass is a leading provider of local area network or LAN systems, which allow personal computers to connect with each other and to share data from the same files. For example, computers in an office can exchange information with those at the factory site.
"We have not been very much into the LAN connections until this last year," said Jerry Held, vice president of Tandem's New Ventures Group. "It has been very well received by our customers . . . and as they deploy it, they are asking us to come in and provide a more complete solution," he added.
Tandem designs, makes and sells multiple-processor computer systems, known as Tandem's Non-Stop, for users with heavy on-line transaction processing requirements. Its systems are designed to minimize the risk of failure and are found on the floor of the New York Stock Exchange and in bank automated teller machines. Its stock fell 37.5 cents a share to $18.25 after the news was announced.