Wang Global, the new company formed to take charge of Wang Laboratories Inc’s purchase of Ing C Olivetti SpA’s Olsy systems and services division (CI No 3,359), says that at least $386m will be needed over the next two to three years to integrate the unit, and that jobs will be lost as the company rightsizes. As a result, Wang told financial analysts in New York yesterday, the company expects operating cash flow to be negative over the next year. It hopes things will turn positive during the second year. $290m will relate to severance, redundant facilities and other Olsy-related costs, $90m will be spent on integration-related costs at Wang. The company said it expects the acquisition to be accretive to earnings per share within 12 months.
