newsbytes@clarinet.com (02/04/90)
MONTREAL, QUEBEC, CANADA, 1990 JAN 31 (NB) -- Terminal and network hardware maker Comterm is discussing with at least five companies the sale of its field service division. Dolliver Frederick, president and chief executive of Comterm, told Newsbytes three companies have "done their due diligence" in looking at buying the division, which services Comterm products and those from other manufacturers. The company has also been talking to two other firms. That, Frederick said, "is as definitive as we can be at this juncture." The company hopes to have an agreement in 30 to 45 days, he said. Comterm is selling the division partly to reduce debt and partly because service is better spun off into a separate organization, Frederick said. Just a little more than half the division's business is servicing Comterm-related products, he said, while the rest is third-party service. "There are all kinds of distinct disadvantages in having a captive service organization." This move follows closely on announcement of an agreement in principle to sell Comterm's contract manufacturing division to CompAS Computer Assembly of Brockville, Ontario, Canada. That deal is still awaiting confirmation of CompAS's "economic partner" status in Quebec, a designation that depends on employment and manufacturing commitments. "It has taken a little longer than we would like," Frederick said, but there is "no reason to believe it will not close." The sales will allow Comterm to concentrate on its core businesses: networking equipment and computer terminals. Frederick said the company plans a major joint announcement with another firm during the NetWorld conference February 13 to 15. Frederick and partners acquired 47 percent of Comterm in a refinancing last May. (Grant Buckler/19900202/Press Contact: Dolliver Frederick, Comterm, 514-694-4332)