Wang Global has been bought by Dutch services company Getronics, creating a combined entity with sales of $5 billion.
The agreement was announced at the same time as the US services company reported a net loss of $57.7 million, or $1.25 per share, for its first quarter ended 31 March. Revenue was $789 million.
During the first quarter, Wang recorded restructuring charges and integration-related period costs of $51.5 million, following its acquisition of Olivetti's services arm Olsy.
Joseph Tucci, chairman and chief executive of Wang, said: 'We are excited that Wang Global and Getronics will be joining forces to create a $5 billion global organisation, one of the five largest network and desktop services and business solutions companies in the world. Together, we will have an even greater ability to meet the growing needs of all our customers.'
The deal will be completed with a offer of $29.25 per share - approved by Wang's board of directors - and will raise about $1.36 billion.
Wang said progress towards its goal of between $150 million and $200 million in cost savings was on target and it ended the period with consolidated cash balances of $182 million and debt of $346 million.
Tucci said Wang increased growth in the quarter by winning three contracts valued at more than $100 million each. The most recent was a five-year deal with Abbey National covering desktop outsourcing, help desk and hardware and software support.
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