April 21, 1987
UNIX BANNS: PLEXUS, ARETE AGREE A MERGER
By CBR Staff Writer

Arete Systems Corp and Plexus Computers Inc have signed an agreement to merge
their operations in an exchange of stock; the agreement is subject to approval
by shareholders of both firms, but both are privately held so no financial
details were given. The combined company will go under the Plexus Computer Inc
name (no-one was sure how to pronounce Arete), and Plexus president and chief
executive Paul Klein will hold the same posts at the new merged company. The
combined revenues of the two San Jose companies totalled $65m last year; Plexus
says it did $30m last year, implying about $35m for Arete. Together they have
500 employees worldwide. Both companies manufacture Unix systems: Arete’s
multiprocessor systems are mainly for transaction processing; Plexus just
introduced its Extended Data Processing systems, designed to offer mixed-mode
processing for image, text and data on departmental computers supporting IBM
Personals. The pair cite their different sales fields as one reason for the
merger: Arete operates mainly in the OEM market, with Unisys its biggest
customer, while Plexus stresses end-user and value-added reseller sales. The
merger will give Plexus users a growth path beyond its new line of 68020 boxes.