Lee Data

Apertus Technologies, Inc.

Trade name	Carleton Corporation (1998–2000)
Formerly	Lee Data Corporation (1979–1990)
Industry	Computer hardware Software
Founded	1979 (1979) in Eden Prairie, Minnesota
Founder	John M. Lee John Roy
Defunct	Template:End date and age
Fate	Acquired by Oracle Corporation
Products	Data terminals Terminal emulators Data warehousing software
Number of employees	1,128 (1985, peak)

Lee Data Corporation was a U.S.-based computing firm located in Eden Prairie, Minnesota, operating from 1979 until 1990. Established by John M. Lee and John Roy, the company focused on manufacturing data terminal equipment compatible with the IBM 3270. During the mid-1980s, it expanded its market presence by delivering innovative solutions at prices below IBM’s offerings; however, its financial results declined as IBM began incorporating similar technologies.

In 1990, Lee Data exited the terminal business and redirected its efforts toward telecommunications hardware and software under the new name Apertus Technologies, Inc.. Later in the 1990s, it adopted the trade name Carleton Corporation before being acquired by Oracle Corporation in 2000.

Lee Data Era (1979–1990)

The inception of Lee Data dates back to early 1979 when John M. Lee and John Roy—both formerly with Data 100, Inc.—founded the company following Northern Telecom’s acquisition of their previous employer. Initial capital was provided by Ed Orenstein, a former supervisor. The firm concentrated on producing IBM 3270-compatible terminals, including multiple glass display units, controllers, and printers. By April 1980, operations were housed in a 21,000-square-foot facility in Eden Prairie, staffed by 31 manufacturing personnel.

The company experienced swift expansion: revenue climbed from $631,000 in its first year to $13.6 million by fiscal 1982, marking its inaugural profit of $1.9 million. Lee Data became publicly traded on the over-the-counter market in November 1982, significantly enhancing founder John M. Lee’s personal wealth. By 1983, annual sales exceeded $50 million with an approximate four percent share of the U.S. data terminal sector. The Bell System represented Lee Data’s most significant customer base, contributing about one-quarter of total revenue; following the Bell System’s breakup in 1984, its Regional Bell Operating Companies continued as major clients.

Lee Data sought expansion via acquisitions but encountered obstacles. In 1983, attempts to purchase Wordtronix—a rival word processing system developer founded by former Data 100 employees—were unsuccessful; instead, Lee Data secured a minority interest. Another acquisition bid targeted Visual Technology, a Massachusetts-based terminal manufacturer valued at $16.1 million through stock exchange announced late in 1983; this deal collapsed early in 1985. Despite paying $3 million in termination fees, Lee Data obtained Visual Technology’s patents and intellectual property rights, including designs for a "supermicrocomputer" utilizing the Intel 80286 processor architecture, which they introduced as System 2000 in 1985.

In January 1986, Lee Data completed acquisitions of two competitors for $4 million: Datastream Communications from Santa Clara, California—recognized for cluster controllers and file transfer programs—and Phaze Information Machines Corporation, also an IBM-compatible terminal maker.

Employment numbers peaked at 1,128 workers in early 1985; however, financial strains prompted layoffs exceeding one hundred employees that year amid shrinking profits caused by competitive pricing pressures including those from IBM. By 1987, although maintaining approximately 1,100 staff members, the company enforced a hiring freeze due to declining sales and quarterly operating losses amounting to $1.3 million. Four founding executives departed by late 1987; early in 1988 Lee Data divested its UK branch to Olivetti.

In response to diminishing terminal revenues, Lee Data shifted focus toward niche computer networking software but continued struggling financially. In October 1989, it reduced its workforce by 260 employees following a forecasted quarterly loss of $18 million. The fiscal year closed with losses between $45 million and $50 million—ten times higher than the previous year—signaling a critical downturn preceding the company’s eventual strategic pivot and rebranding.

As Apertus Technology (1990–1997)

In February 1990, Lee Data divested its data terminal division to Intelligent Information Systems, Inc., for $8 million. Simultaneously, founder John Lee stepped down from his roles as chairman, CEO, and president. By July of that year, Lee Data had rebranded itself as Apertus Technologies, redirecting its business strategy toward terminal emulation software and reducing its workforce from 650 to 275 employees.

With Robert Gordon assuming the CEO position, Apertus experienced a notable turnaround, securing a 25 percent share of the terminal emulator market by 1994. The company achieved $26.9 million in revenue alongside $4.5 million in net income, solidifying its presence within the software sector.

As Carleton Corporation (1997–2000)

During the period from October to November 1997, Apertus divested its terminal emulation assets to Computer Network Technology Corporation for $11.4 million and simultaneously acquired Carleton Corporation, a Minneapolis-based developer specializing in data warehousing software. Subsequently, the company adopted the Carleton name for its operations.

In 2000, Oracle Corporation completed the acquisition of Apertus (then operating under the Carleton name) through a stock transaction valued at $8.7 million, incorporating its data warehousing solutions into Oracle’s product offerings.

Further reading

• Gross, Steve (March 26, 1984). "Lee Data chief forsees more success." Star Tribune, 1M, 4M.
• Gross, Steve (October 2, 1987). "Askanas leaves Lee Data." Star Tribune, 7B, 9B.
• Carideo, Anthony (May 29, 1989). "Languishing Lee Data stock begins to stir." Star Tribune, 4D.