NEW YORK -- Keane Inc., in a move that will double its revenues, said Thursday it has agreed to buy Nynex Corp.'s information-services businesses for an undisclosed amount of cash.
Keane said it will acquire AGS Information Services and several associated businesses, including Atkinson, Tremblay & Associates of Canada, AGS Federal Systems and AGS Management Systems.
Boston-based Keane said the sale was scheduled to close by the end of December.
Nynex, which recently agreed to make a $1.2 billion investment in Viacom Inc. to help the cable giant's takeover fight with QVC Network Inc. over Paramount Communications Inc., said it would take a fourth- quarter charge of up to $275 million to account for the costs of selling AGS Information Services.
Matthew J. Stover, president of AGS Computers Inc., said, 'This sale is part of NYNEX's strategy to focus on our core competencies of building and managing communications networks.'
Keane stock gained $1.25 to $23.75 in mid-session trading on the American Stock Exchange. Nynex was off 87.5 cents to $41.50 on the New York Stock Exchange.
Keane said AGS Information Services and the other businesses to be acquired have estimated 1993 total revenues of over $160 million.
AGS, which provides information management consulting services, systems integration, staff supplementation and software solutions, has more than 2,000 employees in 30 offices and is headquartered in Mountainside, N.J.
Keane said the acquisition will allow it to nearly double revenues for the second time within a year. Keane acquired GE Consulting Services, formerly an $85 million subsidiary of General Electric, in January.
'Acquisitions are a vital part of Keane's strategy to deliver higher quality software more cost-effectively,' said John F. Keane, president and chief executive officer. 'The acquisition of AGS will allow us to broaden our capabilities, build the critical mass of our branch offices, and cost-effectively expand our services into new markets.'
The executive said the acquisition will also help the company to continue to take advantage of economies of scale by spreading overhead expense across a larger base of revenue.
