Memorex bought out by managers

Memorex Telex Europe, the systems integrator, has been acquired in an MBO by its German management and institutional investors for an undisclosed sum.

David Mills, Memorex Telex marketing manager, said: 'We still don't know who will be running the show. We understand that all the European subsidiaries will be trading as discrete entities.'

Investors, backed by venture capitalist Schroders, acquired the German, French and UK arms of the business and have recently completed the acquisition of the Spanish, Dutch and Irish operations.

The previously Dutch-owned company has shrunk from a $2 billion global company to a $360 million one over the past 18 months.

Its hardware and software manufacturing operations for the mainframe market have gradually been phased out as competition pushed its market share down.

The company has filed for bankruptcy protection several times since 1992, and it sold its US and Pacific Rim operations in 1996. In April, under Chapter 11 bankruptcy protection, it announced its intention to sell the European side of the business. The profitable German operation reported a growth in turnover of about 30 per cent for the fiscal year ended 31 March.

Mills said the company was now debt-free and able to return to profitability.

He said relationships with key vendors would not change.