Computer Sciences To Buy Mynd
Tuesday, June 20th 2000, 12:00 am
By: News On 6
COLUMBIA, S.C. (AP) â€” Computer Sciences Corp. said Tuesday it would acquire financial software developer Mynd Corp. for about $568 million in cash in a marriage of two companies that have been fighting each other in court.
Computer Sciences, based in El Segundo, Calif., will pay $16 per share for Mynd's approximately 35.5 million outstanding shares.
Mynd's shares rose almost 38 percent to $15.063 in early trading on the New York Stock Exchange after the deal was announced. Computer Science's shares were down $1.375 a share at $82.
Computer Sciences is an information technology company. Mynd, formerly Policy Management Systems Corp., specializes in software for the insurance industry and finance.
Mynd will operate as part of Computer Sciences' financial services group headquartered in Austin, Texas. Mynd's Columbia headquarters will be the center for property and casualty industry operations, company officials said.
Work force reductions are likely, they added.
Computer Sciences sued Mynd in January, claiming its former employees were paid by Mynd to develop a competing insurance services computer program. Mynd countersued, claiming defamation, unfair trade practices and interference with contractual and business relationships.
There was no immediate information on what will happen to those court cases.