Eastman Kodak Co. and Wang Laboratories Inc. said Thursday they were in talks over a possible deal involving Wang’s software business, which industry analysts said Kodak may buy for up to $300 million.
Company officials declined to elaborate on the talks, but analysts said Kodak wants to buy Wang’s lucrative imaging software business.
In 1995, Kodak’s Business Imaging Systems unit set up an alliance with Wang to jointly develop and market a set of common standards for document imaging. The products form the core of Kodak’s efforts in document imaging software.
Imaging software allows companies to scan paper documents and put the information into their computer databases.
Wang’s imaging software business had sales of $50 million last year, which could rise to $75 million in the current fiscal year, Prudential Securities research analyst Alex Henderson said.
“This is a case where Kodak wants to buy, not necessarily where Wang wants to sell,” Henderson said.
He said that he expected Wang to hold out for $250 million to $300 million, a hefty price tag given the business’ sales.
