EDS buys World Computer, a vendor to 250 credit unions.

Electronic Data Services has acquired troubled World Computer Corp. to expand its market share.

Terms were not disclosed.

The acquisition gives EDS, a division of General Motors Corp., two data processing products and 250 credit unions as customers.

"These 250 credit unions looked to me like an additional market where we could offer our products and services," said Mitchell Pennigar, vice president of EDS' credit union division.

Before the acquisition, EDS served about 2,000 credit unions. It has acquired 12 credit union data processing systems since 1979.

System Problems

David Selina, president of World, will head the World product group, which will retain its product name. He will report to Mr. Pennigar.

World has had problems with its WorldWorks data processing system. Three years ago, computer crashes crippled the original system. World expected that a new version would be in place in 47 credit unions by the end of 1992. But the system has been installed in just 11, and conversions to the system have been on hold while features were being added, Mr. Selina said.

He said credit unions have already placed 26 orders for the system.

Costly Setbacks

World has lost 25 credit union customers in the past three years and has invested $17 million in WorldWorks since 1990, bringing development costs nearly 250% over budget. In the spring it reduced salaries of its 270 employees by 10%, Mr. Selina said.

He said that World is profitable despite the setbacks, and that the sale was not driven by financial problems. Revenue this year is expected to be flat, at about $28 million; net income for the first half was $400,000.

Mr. Pennigar said WorldWorks is a good system.

"As part of due diligence process we came comfortable with where World was with WorldWorks," he said. "We're going to make WorldWorks easier to maintain and support."

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