The latest megadeal in what already looks like a year to break all merger and acquisition records sees Continuum Co Inc agreeing to sell out to Computer Sciences Corp, El Segundo, California for $1,500m in shares. Computer Sciences is to pay 0.79 of a new share for each Continuum out, or 19.1m shares all told. DST Systems Inc, which owns about 23%, of Continuum, will vote its shares in favor of the deal. Continuum, which itself just ate Hogan Systems Inc, will add leading edge insurance and banking industry software and services to Computer Sciences’ portfolio, will retain its name and its Austin, Texas headquarters and become a subsidiary of Computer Sciences. Continuum had pro forma sales of about $490m in 1995, including those of Hogan. Computer Sciences did $4,100m turnover in 1995, and with every deal of this kind, looks a more attractive acquisition candidate for IBM Corp – if it were able to get an agreement past the regulatory authorities.
