AILING United States computer maker Digital Equipment last week off-loaded its Rbd database and repository businesses to Oracle Corp for US$108 million in cash, as part of ongoing efforts to re-focus on core activities.
Pending the approval of US regulators, the agreement will see the transfer of 250 Digital engineers, management and support employees responsible for the Rdb database to the Oracle payroll.
The company said no layoffs would directly result from the sale, which follows similar down-sizing efforts that include the recent sale of Digital's disk-drive business to Quantum Corp and the off-loading of its 8.5 per cent stake in Italian computer vendor Olivetti.
Digital Asia executives last week played down the significance of the spin-off as a cost-cutting exercise, preferring to characterise the move as a strengthening of the firm's strategic relationship with database powerhouse Oracle.
Under the terms of the sale, Oracle agreed to create a dedicated Rbd development team - to be located in New England in the American northeast - and has committed to the continued development of the Rdb product.
Digital vice-president and Asia region sales director Graham Long said the company would continue to be responsible for all existing maintenance contracts for 15 months or until they expire, after which maintenance would be handled by Oracle.