The Texas office hardware maker ABACs said Thursday it will no longer buy Arizona-based ABAC’s software to manage data center infrastructure.
The announcement was made in a letter sent to ABAC President and CEO Paul Gebhardt and its U.S. office equipment division manager.
The company said it would buy ABAC products in the U.K., Canada and Mexico instead.
The ABAC software, which ABAC developed in collaboration with the Texas office system vendor, ABAC, Inc., was originally licensed to ABACE Corp., which is based in Virginia.
ABACE said it will sell its products in North America, Europe and Asia.
“The ABAC technology is designed to make the data center more resilient and flexible, enabling more efficient and predictable deployments of data centers, enabling better business and economic performance and increasing customer satisfaction,” the ABAC CEO said in a statement.
“We are very proud of ABAC and its technology and have long supported ABAC to innovate and to deliver products that are better for the data centers and customers.”
ABAC also said it was planning to invest $400 million in a new data center, with a $2 billion capital investment, to upgrade its existing facilities.
“In the future, we expect to invest significant amounts of capital into ABAC facilities, including new facilities to support new product development, as well as new facilities for advanced analytics and other research and development efforts,” Gebhart said.
“It is critical that ABAC continue to invest in these facilities to ensure we can continue to grow our business and meet our customer needs.”
ABACE CEO Paul K. Gebhard, left, and ABAC president and CEO, Paul Gevhardt, sign a statement on their new office equipment product ABAC Software.
The Texas-based company said that ABACE had previously offered ABAC equipment to a large number of its clients, but that AB ACE decided to cease its business relationship.
The move is the latest in a series of actions by the Texas company to limit ABAC in recent years.
In 2016, ABACE’s Texas operations announced they were terminating its relationship with ABACE and ceasing to sell ABAC office equipment.
The companies said the ABACE products were not compatible with ABAC systems and that the ABACT products were too complex for a company of ABACE size.
In 2019, AB ACE also announced that it would not renew its license to sell the ABACC software, but would purchase the company’s new software.
In October 2019, GebHart announced ABAC was ceasing its partnership with AB ACE and would not sell ABACE equipment to AB ACE or its U of T office equipment customers.
The agreement was for 10 years, and Gebhart said that it was “partially” contingent on ABACE paying a $1.9 billion capital penalty.
ABAC has said it plans to restart its relationship and resume its business as a vendor of ABACC and other software.
“ABAC has a long history of supporting ABAC with their products, technology, and services, and we look forward to continuing to work together in the future,” GevHart said.
In June 2018, ABACC agreed to buy ABACE in a $3.2 billion transaction, which was announced in January 2018.
The purchase was expected to be completed by the end of 2019.
“After careful consideration of the impact of the transaction on ABAC operations, we have decided to discontinue ABAC as a direct vendor of the ABATech software,” ABAC said in the statement.
ABACT said the new company will work closely with ABACC on ABACC-branded products, including its products and software.
ABACC CEO Paul B. Gevhard, center, and chief executive officer, Paul K., left, sign documents on ABATECH’s acquisition of AB ACE.
The new ABAC will be known as ABAC.
The U. of T said the deal would not affect the university’s ABATEC business or its ability to compete with ABATAC in other markets.
The deal is the largest in the country.
“There’s a great deal of synergy between ABAC on the data-center side and ABACE on the software side,” said Peter T. Brown, chief technology officer at the University of Toronto.
“What we’re seeing is the ability to scale and scale the technology and the expertise that they have.
And this allows us to offer more options to our students and students in the university.”
ABACC said it planned to focus on developing new products for other customers.
“With this transaction, we’re making a very significant commitment to our customers, and the University is one of them,” said Gebhar, who is also vice president of the university.
“I think this is going to make a big difference to the university, to our campus, to the students and our business.”
AB ACE’s new CEO,