In a move to further expand its presence overseas, Electronic Data Systems Corp. has acquired a New Zealand technology firm.
Plano, Tex.-based EDS has purchased Databank from a group of New Zealand banks for an undisclosed sum.
EDS officials said they expect the deal to generate at least $350 in revenue over the next five years.
Global Strategy
"We feel that in addition to the United States market there is a lot of opportunity for us outside the country," said Coley Clark, an EDS corporate vice president. "It's all part of a global strategy to both expand our presence and leverage our strengths and products around the world."
Mr. Clark said the company hopes to leverage its technology at home to its overseas locations, and vice versa.
"You get a broader perspective as you go outside the U.S.," he said.
In recent months, the company has also made other moves to expand its business abroad. In January, it bought Sigeba, a technology firm based in Buenos Aires, Argentina. EDS also acquired Gruppo S&M, an Italian firm that supplies computer systems to financial services companies. EDS now operates in 33 countries.
Wellington-based Databank, which was formed in 1967, was owned by four banks in the South Pacific nation. The company runs settlement systems for Bank of New Zealand, ANZ Banking Group (New Zealand, Westpac Banking Corp., and the National Bank of New Zealand, with together hold about 70 percent of the country's market in terms of assets.
Those banks are to remain Databank customers, said EDS officials.
Databank also develops software and provides data processing, disaster recovery, and other services for New Zealand businesses.
The company had about $50 million in revenue last year and employs 950 people.
Mr. Clark said EDS has yet to determine whether there will be any consolidation of the New Zealand operations.
