Datapoint and Mohawk will combine units.

The two firms jointly announced that they have agreed to the combination of Datapoint’s service business and Mohawk Data Services’ customer service division. The transaction will be accomplished with the formation by Datapoint of a new publicly traded subsidiary into which its service business would be spun off on a tax-free basis. Shares of the subsidiary will be distributed to existing Datapoint shareholders. The new company will then purchase the MDS customer service division. Edward P. Gistaro, president and chief executive of Datapoint, said that “the combination of the Datapoint and MDS service businesses will result in the largest third-party service company in the industry, with revenues in excess of $200 million.”