NCR defends Memorex Telex acquisition

NCR defends Memorex Telex acquisition

Just four weeks into its acquisition of Memorex Telex, NCR has defended its actions, stating the buyout gives the company a real future in global markets.

Josh Clayman, NCR's Asia Pacific VP of customer services, told ARN yesterday that while he concedes some former Memorex Telex staff may feel disenfranchised by the buyout, it was never intended to compete with staff plans for a management buyout.

"We were taking a fundamentally good business and giving it a future," he said. "I was only aware of [the MBO] six or seven days before close [of negotiations]."

He commented he was surprised by the "mixed" press at the time quoting disgruntled employees, stating confidentiality agreements meant NCR was only able to communicate directly with Memorex Telex parent Kanematsu.

Clayman said he believes NCR acquired what was essentially a good company with good customers, sales and technical people but a "sick balance sheet".

In addition, he commented he has trouble believing the MBO option was viable. "The same reasons we saw [Memorex Telex] as attractive a few years ago were still there," he explained of NCR's decision to approach Kanematsu again some four months ago.

Meanwhile, Clayman said less than 10 people have been made redundant as a result of the acquisition. "If you talk to Memorex Telex people today you will find they are happy."

NCR is also looking to add at least two more companies to the portfolio before the year's out, he said.

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