Prime Computer Inc recognises that in an industry dominated by IBM – $50,000m a year, Unisys – $10,000m, DEC – $9,000m, and Honeywell Bull – $7,000m, not to mention the Japanese, it’s no good being a $1,000m a year company any more. At the beginning of the year the company charged its war chest with an issue of $350m of convertible debentures, and is now actively seeking acquisitions that would double its size. One name that has been actively canvassed is Data General Corp, but such a move would make little sense since the most expensive aspect of the minicomputer business is supporting a proprietary operating system and even if it did acquire Data General, it would make no sense to abandon either Primos or AOS. Data General anyway would resist, and a hostile bid would quickly become messy and likely drive the target into the arms of a white knight. In terms of both size and fit, companies like ComputerVision, Silicon Graphics and Daisy Systems would seem to make much more sense.
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