Informatics General: Difference between revisions

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==Equitable Life Assurance Society relationship==

Beginning in 1970 the computer industry hit a downturn that lasted several years.<ref>Campbell-Kelly, ''From Airline Reservations to Sonic the Hedgehog'', pp. 82–86.</ref> Software houses of the time tended to suffer from unprofitable contracts, failed ventures, and slowing demand.<ref name="fishman-277">Fishman, ''The Computer Establishment'', pp. 277–278.</ref> Informatics' creation of a Data Services Division, and with it the acquisition of a number of [[computer service bureau]]s as a means of providing [[utility computing]], did not go well.<ref name="ck-85"/> In May 1970 Informatics announced a $4.2 million loss, its first since 1963.<ref name="ck-85">Campbell-Kelly, ''From Airline Reservations to Sonic the Hedgehog'', p. 85.</ref> But in a time when many software firms did not survive,<ref name="fishman-277"/> the more conservatively managed Informatics did.<ref>Campbell-Kelly, ''From Airline Reservations to Sonic the Hedgehog'', pp. 81, 85.</ref>

In 1971, Informatics and [[The Equitable Life Assurance Society of the United States]] announced a joint venture, Equimatics, Inc., headed by Werner Frank, that would develop and sell computer-related products for the insurance industry.<ref>{{cite news | url=https://www.newspapers.com/article/the-los-angeles-times/129474049/ | title=Informatics, Equitable in New Field | newspaper=Los Angeles Times | date=December 3, 1971 | page=13 (Part III) | via=Newspapers.com}}</ref> In particular, Equimatics, sought to establish a data services business that would provide such services to Equitable and others in the insurance industry.<ref name="frank-52"/>

But in a time when many software firms did not survive,<ref name="fishman-277"/> the more conservatively managed Informatics did.<ref>Campbell-Kelly, ''From Airline Reservations to Sonic the Hedgehog'', pp. 81, 85.</ref>

While Informatics revenues did increase during this period<!-- By 1974, Informatics revenues were up to $33 million. -->,<ref name="cw-15yrs"/><!-- 1978 logo is taken from

<!-- 1978 logo is taken from

https://books.google.com/books?id=azxRE2HtSRkC&pg=PA45

Computerworld ad March 27, 1978 --> in many respects choices about the direction of the business were forced by the inability of Informatics, in the economically gloomy early 1970s, to find investment capital.<ref name="ck-85"/>

Computerworld ad March 27, 1978 -->

Accordingly, in September 1973, it was announced that Informatics would be acquired by Equitable Life Assurance Society, for $7 per share in cash.<ref>{{cite news | url=https://www.newspapers.com/article/the-evening-sun/129475182/ | title=Informatics Being Acquired | newspaper=The Evening Sun | ___location =Baltimore | date=September 24, 1973 | page=C-13 | via=Newspapers.com}}</ref> The deal closed in March 1974.<ref>{{cite news | url=https://www.newspapers.com/article/the-morning-call/129475449/ | title=In Business: ... Equitable Life | newspaper=The Morning Call | ___location=Allentown, Pennsylvania | date=March 7, 1974 | page=61 | via=Newspapers.com}}</ref> Thus Informatics became a subsidiary of Equitable Life, with the goal of gaining the ability to grow organically and to acquire other businesses.<ref name="cw-15yrs"/>

[[Image:Financial Institutions, Ventura Blvd., Encino.JPG|thumb|left|260px|From the mid-1970s on, Informatics corporate headquarters was in an office building on Ventura Boulevard in Woodland Hills, similar to these structures along the same road]]

In 1974<!-- another source says 1973 -->, Informatics became a subsidiary of [[AXA Equitable Life Insurance Company|The Equitable Life Assurance Society of the United States]], with the goal of gaining the ability to grow organically and to acquire other businesses.<ref name="cw-15yrs"/> This followed a joint venture, called Equimatics, that Informatics had formed with Equitable in 1971 to establish a data services business that would provide such services to Equitable and others in the insurance industry.<ref name="frank-52"/> But in many respects the choice to become a subsidiary was forced by the inability of Informatics, in the gloomy early 1970s, to find investment capital.<ref name="ck-85"/>

For the year 1976, Informatics had revenues of $58 million.<ref name="cw-15yrs">{{cite news |url=https://books.google.com/books?id=oiB9AqI0GZ4C&pg=PA52 |title=After 15 Years, Informatics Confident of Its Survival |magazine=Computerworld |date=April 25, 1977 |page=52}}</ref> It had some 1,800 employees at locations around the world.<ref name="cw-15yrs"/> From around 1976 through to the end in 1985, Informatics corporate headquarters was located in an office along [[Ventura Boulevard]] in Woodland Hills.<ref>See corporate address in {{cite news | url=https://books.google.com/books?id=0XjmsaVaPPwC&pg=PA15 | title=How Informatics can help you get the job done faster. And cut costs. | magazine=Computerworld | date=April 12, 1976 | page=15}} (advertisement) and {{cite news | url=https://books.google.com/books?id=XxS89r_AA_0C&pg=PA47 | title=Informatics General enhances application tools | magazine=Computerworld | date=April 15, 1985 | page=47}}</ref>