Hitachi Data Systems Corporation and Sand to continue to
work cooperatively while operating independently.
July 8 1999 — Hitachi Data Systems Corporation and Sand Technology Systems International, Inc. (Nasdaq: SNDCF) today announced an agreement whereby Sand sells its 40% share in Hitachi Data Systems Inc., the Canadian operating arm of Hitachi Data Systems Corporation of Santa Clara, California, to Hitachi Data Systems Corporation, thereby making the Canadian operation a wholly-owned subsidiary of Hitachi Data Systems Corporation. For Hitachi Data Systems Inc., a.k.a. Hitachi Data Systems Canada, no immediate changes to current company direction or operations are expected.
Hitachi Data Systems Corporation is becoming more solutions-oriented, and plans to supplement its direct sales model with an indirect sales model. The change allows Hitachi Data Systems Inc. to consolidate and focus its efforts on the needs of the Canadian market with no projected changes in management or employee base. For Sand, this represents the optimal time to realize its investment in Hitachi Data Systems Inc., since the additional capital provided from the sale will help fuel Sand's marketing and development efforts related to its Nucleus® product suite.
Commenting on the decision to sell its share of the Canadian joint venture with Hitachi Data Systems, Arthur Ritchie, Chairman and CEO of Sand Technology, said "Hitachi Data Systems is focused on growth and is repositioning the company to meet the changing needs of its customers, as evidenced by its recent OEM and joint technology agreement with Hewlett-Packard. At the same time, Sand too is focused on growth, and the capital from this transaction will provide us with an additional measure of independence to grow our business. We agreed that, during the next few years, both companies would better realize our respective goals by working together, but operating independently."
According to the predefined terms of the Shareholders Agreement, Sand's stake in Hitachi Data Systems Inc. is valued at more than $7 million Canadian. This is in addition to the $4 million Canadian that Sand has realized through dividends paid over the last two years.
As for the most strategic part of the Hitachi Data Systems and Sand relationship, the Nucleus Exploration Suite™, the sale of Sand's stake in the Hitachi Data Systems Canadian operational joint venture will have no effect on Hitachi Data Systems' current plans to market Sand's Nucleus technology in selected markets as part of its solutions offering. " This decision in no way diminishes the relationship between Sand Technology and Hitachi Data Systems, one that began almost two decades ago," said Mr. Ritchie.
Clark Straw, Executive Vice President of Worldwide Sales for Hitachi Data Systems, added, " Sand Technology's partnership in the Canadian Hitachi Data Systems operation has helped provide innovation and profit focus to our business. We now want to build on this success as we transition into a more solutions-oriented company."
Sand Technology Systems International, Inc. provides high-performance, scalable software solutions for data mining, data marts, data warehouses, and online analytical processing (OLAP). Sand's Nucleus product suite brings patented technology to the business user allowing for more timely and accurate decision processing within the disconnected client, desktop, workgroup, departmental, and enterprise computing environments. Supporting industries and vertical markets like Retail, Finance, Healthcare, transportation, telecommunications, Manufacturing, Government, and Insurance, Nucleus is used for corporate initiatives such as customer relationship management (CRM), risk analysis and management, product trend and profitability analysis, fraud detection, emerging markets, competitive analysis, and quality control. Sand has commercial relationships with IBM, Compaq Computer Corporation, Microsoft, Hitachi Data Systems, SAIC, GE, Brio Technology, and Information Builders, Inc.
Recognized as a leading provider of business solutions for the world's most IT-intensive corporations, Hitachi Data Systems Corporation offers professional services, multi-platform storage subsystems, and the industry's broadest line of high-performance servers. The company's extensive range of products and services, coupled with its business alliances with key industry leaders, enable it to transform IT into business agility for high-end and middle-market customers. Hitachi Data Systems Corporation is owned by Hitachi, Ltd. (NYSE: HIT) and has its headquarters in Santa Clara, California.
Contacts: PR
Mark Lewis, Hitachi Data Systems Corp. (408) 970-4356
Susan Waxman, Vice President, Finance, Sand Technology Systems International, Inc. (514) 939-3477
Note: To obtain a French version of this announcement, please contact Denise Doucet of Hitachi Data Systems Inc. at (514) 982-0707.
Hitachi Data Systems is registered with the
U.S. Patent and Trademark Office as a trademark and service mark of
Hitachi, Ltd. Nucleus is a registered trademark and Exploration
Suite is a trademark of Sand Technology Systems International, Inc.
All other brand or product names are or may be trademarks of, and
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