This Day in History: July 21

Today: December 7, 2016
Xerox Withdraws from the Mainframe Computer Market
Xerox computer

July 21, 1975

Xerox Withdraws from the Mainframe Computer Market

In 1969, Scientific Data Systems (SDS) merged with Xerox in a stock-swap deal worth approximately $930 million. The merger allowed Xerox to rebrand SDS's Sigma series of computers as Xerox Data Systems (XDS) machines, but they failed to have a market impact against competitors like IBM and sold the rights to build Sigma computers to Honeywell. Xerox lost $264 million over the five years they produced mainframes.