IBM Will Sell Rolm Mil-Spec Unit to Loral

IBM said Tuesday that it has agreed to sell the military computer division of its Rolm unit to Loral Corp. for about $100 million in cash.

Loral makes sophisticated electronic systems and components for use in military aircraft. It also has interests in telecommunications equipment.

A month ago, International Business Machines said it had reached a conditional agreement to sell the military computer division, called Mil-Spec, to a group of Mil-Spec’s employees.

IBM emphasized at the time, however, that no definitive agreement had been reached and that other companies had expressed interest in Mil-Spec.

Regardless, the employees’ group was unable to arrange financing for the purchase that was acceptable to the Justice Department, which must approve Mil-Spec’s sale, said Elise C. Schepeler, a spokeswoman at IBM’s headquarters in Armonk, N.Y.

Required to Divest

Last November, the Justice Department required IBM to divest Mil-Spec in order to complete the computer giant’s $1.26-billion acquisition of Rolm, a Santa Clara, Calif.-based concern that is primarily involved in office-based telephone systems and other communications products.

The Justice Department said it objected to IBM owning Mil-Spec because the effect “may be substantially to lessen competition” in the specialized area of military computers since IBM represented a potential competitor.

IBM and Rolm said they “disagree with this contention” but accepted the divestiture so they could complete their merger.

Loral said that, in the year ended Dec. 28, 1984, Mil-Spec--which employs 970 people--posted pretax operating income of about $20 million on sales of $85.9 million.

Loral also said it plans “no changes in management or strategic focus” of Mil-Spec following the acquisition, which it expects to complete next month.