Purchase to Boost MTI’s Unix Focus : Computers: Anaheim firm’s $9-million acquisition of Illinois software company is designed to help it compete in office information networks.
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ANAHEIM — MTI Technology Corp. said Tuesday that it will buy an Illinois software company to help it compete in the market for computer information systems running on office networks.
MTI said it has signed a letter of intent to buy National Peripherals Inc., a privately held company in Westmont, Ill., for $9 million, and that it will also assume $9 million of the company’s debt under the agreement.
MTI has traditionally relied on sales of products meant for mainframe computer systems, primarily those made by Digital Equipment Corp. of Maynard, Mass. But MTI’s executives are trying to refocus the company on sales of equipment meant for the computing standard known as Unix, which is becoming more common on office computer networks.
All of National Peripherals’ software is designed for Unix-based systems, and the company’s 20 sales representatives will complement MTI’s sales force of 40, who must understand both Unix and Digital systems, said Tom Raimondi, MTI’s vice president for business development.
Jamie Kiggen, a senior analyst at Prudential Securities, a New York investment bank, said MTI has seen its earnings decline because of direct competition from Digital Equipment Corp.
“The stock has been dead money for a few quarters. But I think this will help them get over that competition,” Kiggen said.
National Peripherals, which is profitable, had revenue of $16 million for the six months ending Jan. 31, 1995, and has 52 employees.
MTI’s Raimondi said he could not comment on whether there would be any shift in the number of jobs at either company following the purchase until after executives had studied National Peripheral’s operations more closely.
As part of the transaction, National Peripherals President Earl Pearlman and William Decker, its vice president of operations, will head MTI’s newly created Unix division.
MTI, which has 625 employees, including 400 in Orange County, had revenue of $34.3 million for the three months ended Dec. 31, 1994. MTI will announce results for its first year as a publicly traded company later this month, a spokeswoman said.
