G.S. Computer Acquired by Unit of B&C; Holdings
G.S. Computer, an Irvine computer leasing firm, has been acquired for an undisclosed amount of cash by Atlantic Computer Systems, the U.S. subsidiary of a worldwide computer leasing group, the companies said Monday.
G.S. Computer is a privately owned, 11-year-old firm that typically leases mid-size computers, such as IBM mainframes, to corporations. Its clients now include Storage Technology, Kawasaki, First Interstate Bank and Lockheed.
With the merger, G.S. Computer will be able to expand its market, said Richard Stebbins, president of G.S. “Atlantic and G.S. Computer share very similar philosophies about equipment leasing and marketing,” Stebbins said. “We’ll be on a major capabilities expansion, going into markets we haven’t entered.”
To do that, Stebbins said, G.S. Computer plans to expand its present staff of 24 employees by 20% to 25% over the next 12 months.
The company estimates revenues of $30 million for fiscal 1989, ending June 30, up 25% from $24 million in the prior year. G.S. Computer expects net income for fiscal 1989 to reach $1 million, up 33% from $750,000 earned the year before.
Its revenue has grown at the rate of about 27% annually, Stebbins said.
Atlantic is a billion-dollar company that supplies and finances IBM and DEC systems. It specializes in providing a full range of computer systems, from personal computers to the largest IBMs, Stebbins said. It is a subsidiary of B&C; Holdings, an international financial services group traded on the London Stock Exchange.
Stebbins, one of two founders of G.S. Computers, will remain with Atlantic as a regional vice president. The other founder, John Guiltanan, will leave to “further his real estate development career,” Stebbins said.
The sale was completed last week.