Insurance software manufacturer Mynd Corp. is awaiting government approval of a proposed buyout by Computer Sciences Corp. at $16 per share. The financially struggling company also said 300 jobs would be cut. The reduction is a “painful but necessary step to take in order to get expenses in line with revenues,” said Larry Wilson, Mynd chairman and chief executive.
An estimated 200 jobs will be cut at the company’s Blythewood, S.C., headquarters. While Mynd has agreed to be acquired by Computer Sciences of El Segundo, Calif., the deal has been held up by Federal Trade Commission review. Computer Sciences has extended its offer until Sept. 12.
Mynd’s second-quarter results showed a loss of $42.9 million, or $1.21 a share. Mynd had second-quarter profits of $15.5 million, or 42 cents a share in the year previous. Special pretax charges of $36.8 million produced most of the loss, including $24.3 million to get out of a merger deal with Welsh, Carson, Anderson and Stowe in order to pursue the Computer Sciences deal. The company also reported $8.5 million in charges related to its United Kingdom operations.
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