A major clearout is to follow the acquisition of Index Technology Inc by Sage Software Inc, announced shortly before Christmas (CI No 1,580) and just completed. Both names are to go, and the combined company, to be based at Sage headquarters in Rockville, Maryland, is to be called Intersolv Inc. Sage is moving quickly to cut costs at Index, and says it has identified 65 redundant employees, 15% of the workforce, that will go, and further cuts will be made by the end of April. Products will also be trimmed although Sage sees the two companies’ software engineering products as complementary. The combined Intersolv will have annual sales of about $72m, Sage had net profits for the year to last April of $3.5m on sales of $26.5m, but Index lost $1m on $46m sales in 1990. And according to the Wall Street Journal, Sage, with 175 employees, looks to do $150,000 per employee, wheras Index, with 428, was doing only $100,000. Sage paid shares worth some $60m for Index.
