Formosa Plastics Group of Taipei, Taiwan, has purchased bankrupt U.S. computer maker Everex Systems Inc. Formosa paid an undisclosed sum for Everex, which had been losing money since 1991 and operating under Chapter 11 of the U.S. Bankruptcy Code since Jan. 4, 1993.
Industry analyst Jeffrey Henning of BIS Strategic Decisions in Norwell, Mass., said cutthroat pricing of personal computers and a stagnant market position caused the Fremont, Calif., company to become the latest victim of computer wars.
``The company tried to do too much and be a generalist in the industry,'' Henning said.
``It had no niche, nothing to make it stand out from the crowd. You just can't do that in this industry and survive,'' he said.
Joe Davis, spokesman for Everex, said the company had several large government contracts to supply computers and a niche in the value-added reseller market, but had allowed itself to get sidetracked into other ventures. Davis said the company plans to return its focus to those markets.
Additionally, Everex plans to introduce a new line of computer systems in late 1994. Everex spokeswoman Bonnie Granieri said Formosa Plastics Group's vertically integrated capabilities and ``cost-effective manufacturing expertise'' will allow Everex Systems Inc. to compete effectively.
Formosa Plastics, part of a $10 billion multinational conglomerate, purchased all assets necessary to continue existing Everex contracts, including the Everex trade name, patents, current products, recently developed products and ongoing product research.
Industry analyst Eric Lewis of IDC in Mountain View, Calif., suggested that the purchase of Everex is part of an increasing trend by Far East companies to get a ``brand name and presence in the U.S. market.''