Computer Consoles Inc. - Acquisition By Standard Telephones and Cables

Acquisition By Standard Telephones and Cables

STC acquired CCI effective January 1, 1989. At this time CCI was organized as two major business units: one in Rochester ("CCI - Rochester"), which manufactured telecommunications equipment, and a Computer Products Division in Irvine ("CCI - Irvine"), which manufactured computer hardware. Office systems software was produced at Reston, Virginia. In reality there was a third operation which was a financing group that held the commercial leases for equipment typically sold to telephone companies. At the time of the acquisition the lease base was rumored to be valued at over $700M US dollars.

Also at the time of the acquisition, CCI was involved in a dispute with General Telephone and Electronics ("GTE") over GTE's failure to supply CCI with certain "computer chips" for a new generation of computers being developed by CCI (the "GTE litigation").

After completion of the acquisition, CCI - Rochester became a subsidiary of an STC operating unit known as STC Telecom. Shortly thereafter, the Computer Products Division at Irvine and Office Products Centre at Reston were sold to another STC operating unit, ICL, for net book value of the assets. CCI - Rochester was kept under the jurisdiction of STC Telecom, which was also in the telecommunications business.