UTAH TECH WATCH - - by David Politis - - 1/27-29/96 Edition

It took six different written offers, but Steve Achelis finally agreed to
sell his company earlier this month.

Since founding Equis International in 1983, Achelis had built his firm into
the leading supplier of investment analysis software in the world. Yet
with more than 40,000 customers worldwide and 1995 revenues of more than
$5 million, Equis seemed poised for great things.

But as Achelis looked forward, he realized that the "rapidness of change"
around him made it necessary to find a larger partner.

So it was that three weeks ago Achelis agreed to sell Equis to Reuters
America in an all cash deal for an undisclosed amount.

Reuters' benefits

Achelis identified two primary factors in his decision to sell to Reuters.

One, its size, with more than $4 billion in revenues in 1995. And two, the
fact that Reuters is the largest provider of financial information in the
world. In other words, it's in the content business.

Interestingly, Achelis says he had an offer on the table when Reuters
approached him last September.

"We could try to hide from the change (occurring around us), or we could
take what we have and try to harness the change," Achelis said.

Most companies don't recognize how the Internet and personal computers will
change, and are changing, how everything is done, he added.

This rapid pace of change is "like a tornado ripping across the plains,"
Achelis said. "There's so much energy in this (the ongoing technological
changes), that it's tearing up the dirt and the homes and everything in
its path."

That's why Achelis decided to sell: to allow Equis to be an agent of change
instead of an object of change.

As of today, Equis will remain based in Salt Lake City. As part of the
Reuters acquisition, Equis and its products will be integrated into
Pennsylvania-based Reality Online, a Reuters company.

WordPerfect sale thoughts

If all goes according to plan, Novell will announce next week that it will
sell its Business Applications Division to Ottawa, Canada-based Corel.

That's what all my sources are saying as I write this column.

According to my sources, Corel representatives were in town meeting with
Novell and BizApps players on Wednesday, and were slated to be in Orem and
Provo through Friday.

For what it's worth, it appears that Novell approached Corel, and not the
other way around.

If everything falls into place, Corel will pay as much as $250 million for
BizApps, which would likely put it (the offer) at the high end of analyst
expectations.

And I use the term "pay" loosely, since at least two sources suggest that
Corel's offer is based upon a stock transaction. Which if true, may help
explain in part why both Corel's and Novell's stock prices have traded at
or near 52-week lows in the past several days.

If Corel is the successful bidder, there is still some question in my mind
if the WordPerfect people can feel secure in their positions, or whether
those positions will remain filled in Utah County. But that's just a gut
feeling on my part.

For their part, however, both Novell and BizApps executives state that it
is their intent to do a deal that will maintain jobs in Utah County.

If, for whatever reason, the Corel deal falls apart at the last minute, it
appears that Boston-based Bain Capital has been slotted as a back-up
offer.

Personally, though, I think the Corel deal is a slam dunk.

Micron machinations

Just three weeks ago, I wrote that I had an "uneasy feeling" about Micron,
and I wondered at the time if "Micron management has decided it's hearing
its competitors' footsteps."

Since then, a lot has happened.

Micron Chairman and CEO, Steve Appleton has resigned, apparently pushed out
by J.R. Simplot, an early financial backer of the company and its largest
shareholder today.

This coincided with announcements that the firm has taken the construction
of the $2.5 billion memory chip fabrication plant in Lehi off "the fast
track," meaning it will no longer work two 10 hour shifts per day or pay
overtime.

Then, this week, Micron announced it has fired the four main construction
firms working on the facility, including three that are headquartered in
Utah.

In their place, the firm will have Micron Construction become its lead
contractor on the Lehi plant.

For now, Micron spokes people state that the firm still intends to have the
facility fully operational in three to five years, with eventual
employment of more than 3,500.

As of today, I believe them. Just don't be surprised if plans change
again.

A marketing communications consultant that specializes in high-tech and
health care clients, David Politis welcomes column ideas at 801-569-2592
or via the Internet at dpolitis@altatech.com.
 
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