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Unit of Fujitsu to Buy Finnish Data Operation

May 30, 1991|From Associated Press

LONDON — ICL, a British computer maker controlled by Fujitsu Ltd., will buy Nokia Data, the information systems arm of Finland's Nokia Corp., the companies announced Wednesday.

Japanese computer maker Fujitsu owns 80% of ICL and Northern Telecom of Canada 20%.

ICL and Nokia said the resulting company--to be known as ICL Nokia Data in Scandinavia and ICL elsewhere--will employ 24,000 worldwide and have sales of about $4 billion.

The deal, to be completed by Sept. 30, is subject to approval by European Commission regulatory authorities. ICL will pay Nokia $400 million for Nokia Data, stock of it in stock.

The arrangement will leave Nokia with a 5% stake in ICL, and Nokia Chief Executive Kalle Isokallio will have a seat on ICL's board.

Nokia Data, with sales of about $1.3 billion, was the only Nokia business group to show a loss in 1990. Nokia, which makes consumer electronics and cellular phones, had sales of $6 billion in 1990. It employes 37,000 in 33 countries.

ICL specializes in mainframe and mid-range computer systems. In 1990 it had an operating profit of $190 million on revenue of$2.8 billion.

Nokia's Isokallio and ICL Chairman and Chief Executive Peter Bonfield said the deal makes geographic sense. ICL is well-positioned in Britain and has a retail systems business in the United States; the acquisition of Nokia Data opens the European market to ICL.

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