Wicat Systems Inc. of Orem has announced that it has reached an agreement in principle to sell a majority of the assets in its wholly owned subsidiary Wicat Systems Pacific Pty Ltd., headquartered in Sydney, Australia, to Fujitsu Australia Ltd., a provider of computer systems.
The unit, which was acquired by Wicat in December 1986, has been responsible for distributing and providing service for the company's general purpose computing systems throughout Australia and New Zealand.Fujitsu will continue, under the proposed agreement, to provide service indefinitely to the owners of Wicat computer systems and will continue to sell Wicat hardware with the PICK operating system.
Wicat has set aside a $1.5 million reserve against loss on the sale.
"The Australian operation was simply not strategically aligned with our focus on computer-based training and education," said Robert W. Mendenhall, chief executive officer.
"It was taking a disproportionate amount of resources by comparison to the potential return. The business fits much better within the Fujitsu organization, and we believe this sale to be in the best interest of our customers and employees in Australia."
Wicat Systems Inc. provides products and services to ensure 30 to 50 percent learning improvement in industry, schools and government.