Nixdorf Computer

Nixdorf Computer AG
Company type	Aktiengesellschaft
Industry	Computer manufacturing
Founded	July 1, 1952; 74 years ago
Founder	Heinz Nixdorf
Defunct	October 1, 1990
Fate	Acquired by Siemens and merged into Siemens Nixdorf Informationssysteme
Headquarters	Paderborn, West Germany
Area served	Worldwide (including Germany, Ireland, Spain, US, Singapore, Japan)
Key people	Heinz Nixdorf (founder), Klaus Luft, Horst Nasko
Products	Computers, banking and point-of-sale technology, mainframes, software (EDos)
Revenue	4 billion DM (1985)
Number of employees	23,000 (1978)

Nixdorf Computer AG was a computer manufacturer based in West Germany, established by Heinz Nixdorf in 1952. Headquartered in Paderborn, Germany, it grew to become the fourth largest computer enterprise in Europe and gained global recognition as a specialist in banking and point-of-sale technology.

Labor for Impulstechnik

During his tenure at Remington Rand Corp., Nixdorf recognized the emerging demand for calculators and obtained funding of 30,000 D-Mark from RWE in Essen. This financial support allowed him to found the Labor für Impulstechnik on July 1, 1952. Within the same year, the company produced its inaugural calculator and soon secured significant clients such as Wanderer-Werke in Cologne and Compagnie des Machines Bull in Paris. The firm experienced swift expansion, necessitating a move to larger premises in 1954. Notable innovations included the Wanderer Conti, recognized as the first desktop calculator equipped with a printer, alongside the development of the Nixdorf-Universalcomputer 820. As growth continued, office spaces were leased in Nixdorf’s birthplace, Paderborn, culminating in a complete relocation with a dedicated facility by 1961—currently serving as a museum location. In 1967, Nixdorf transitioned from acting as a distributor to direct sales, establishing branches including representation in Berlin. A pivotal strategic action involved acquiring their principal client, Wanderer-Werke of Cologne.

Following the acquisition of Wanderer shares in 1968, Labor für Impulstechnik merged with Wanderer Werken on October 1 to form Nixdorf Computer AG, headquartered in Paderborn. Understanding that IBM mainframe computers were prohibitively expensive for many companies, Heinz Nixdorf introduced the cost-effective Nixdorf 820 model, which brought computing capabilities directly into business offices.

In 1968, a significant order valued at 100 million DM marked Nixdorf’s entry into international markets. The company subsequently expanded operations into the United States and Japan. By the 1970s, Nixdorf Computer AG had established itself as the leader of Germany’s mid-range computer sector and ranked as Europe’s fourth largest computer manufacturer, maintaining subsidiaries throughout Germany, Ireland, Spain, the US, and Singapore. By 1972, its presence spanned 22 countries. The rapid pace of growth required new infrastructure; consequently, in 1971 the central headquarters—now known as the Heinz Nixdorf Aue, housing both the Heinz Nixdorf Museums Forum and Universität Paderborn's Heinz Nixdorf Institut—was inaugurated.

In 1975, Nixdorf introduced its highly successful 88xx series for data capture. By 1978, annual sales had reached one billion DM with a global workforce exceeding 10,000 employees.

To enhance employee skills and training opportunities, Nixdorf established a vocational school in 1969 that materialized in 1972 as the Bildungszentrum für informationsverarbeitende Berufe (b.i.b.). Additionally, he invested in employee well-being by constructing the Ahorn-Sportpark adjacent to company headquarters.

In 1980, Nixdorf acquired TCSC, a US-based software provider specializing in IBM mainframe systems, and rebranded it as NCSC (Nixdorf Computer Software Company). TCSC’s portfolio included operating systems EDos and EDos/VS along with licensed versions of ADR’s DATACOM/DB database software. A licensing conflict with Applied Data Research was resolved amicably out of court in 1981, permitting ongoing resale of ADR products.

To fund further expansion efforts, Nixdorf declined a takeover proposal from Volkswagen AG but secured an investment of 200 million DM from Deutsche Bank for a 25% equity stake. The company went public on Börse Düsseldorf in 1984, raising an initial 300 million DM followed by an additional offering that brought in another 700 million DM. Production capabilities were scaled up both within Germany and internationally.

By 1985, Nixdorf AG reported revenues totaling 4 billion DM alongside net profits of 172 million DM and employed approximately 23,000 personnel across operations spanning 44 countries. Founder Heinz Nixdorf passed away from a heart attack on March 17, 1986 during CeBIT in Hannover.

Progress of Nixdorf AG following his passing

After Nixdorf's death, Klaus Luft took over leadership, achieving a revenue of 5 billion D-Mark and employing 30,000 staff within his initial year. Nevertheless, the firm struggled to keep pace with evolving computing trends, missing out on crucial innovations such as the personal computer. In 1987, Nixdorf recorded an operating profit of 330.6 million marks ($180.3 million), but by 1988 it encountered an operating loss amounting to 59.8 million marks ($32.67 million). A cost reduction initiative was implemented, yet escalating deficits prompted Luft to resign in 1989, with Horst Nasko succeeding him. Financial challenges compelled management to explore options including a potential sale of the enterprise.

Exit from IBM-compatible mainframe sector

In 1989, Nixdorf withdrew from the IBM-compatible mainframe arena to concentrate on Unix-based platforms. The company transferred its Nixdorf 8890 IBM mainframe product line to Comparex Informationssysteme GmbH. While Comparex took over hardware operations, it declined responsibility for supporting Nixdorf’s Edos operating system (a derivative of IBM's DOS/VS), instead advising customers to transition to IBM's native mainframe OS. As a result, Nixdorf discontinued development of new Edos releases, thereby avoiding long-term maintenance obligations.

Acquisition by Siemens

On October 1, 1990, Siemens purchased shares in Nixdorf and integrated Nixdorf Computer AG into Siemens Nixdorf Informationssysteme (SNI). Siemens undertook operational restructuring that led to the elimination of thousands of jobs in Paderborn during that year. This consolidation positioned Siemens as the leading computer manufacturer in Europe.

Creation of successor companies

On October 1, 1999, private equity firms Kohlberg Kravis Roberts and Goldman Sachs Capital Partners acquired SNI and rebranded it as Wincor Nixdorf GmbH. Since 2004, Wincor Nixdorf AG has been publicly listed on the Frankfurter Börse, focusing on products such as cash points, cash registers, and reverse vending machines. In 2016, Wincor Nixdorf merged with Diebold, Inc., resulting in the formation of Diebold Nixdorf.

Products

Notable system series:

System Family 620 (1974–1984): Developed utilizing American Entrex technology.
Nixdorf 820 (1968–1979): Semiconductor-based systems featuring early silicon transistors and IBM-sourced ball terminals; included multiple models tailored for diverse market segments.
Nixdorf 8811 (1975–1979): The Datatel "data telephone" allowed office personnel to connect to computers via telephone lines using LED displays and silent spark printers; market penetration was limited due to regulatory constraints.
Nixdorf 8818 (1982): ISDN PBX system—the first German company approved by Bundespost—capable of supporting up to 3000 terminals and facilitating multi-party conference calls; models remained available until 2006.
Nixdorf 8862 and 8812 (1976): Automated point-of-sale systems designed for retail and hospitality sectors with integrated inventory control features.
Nixdorf 8870 (1980): Enterprise Resource Planning system compatible with Niros OS and business applications such as Business Basic.
Nixdorf 8890 (1985): Rebranded IBM System/370 and System/390-compatible mainframes manufactured by Hitachi.

Software offerings:

Edos: Operating system tailored for entry-level IBM-compatible mainframes; forked from IBM's DOS/VS following acquisition of TCSC (The Computer Software Company) in 1980.
PWS/VSE-AF (1983): Unix compatibility layer for lower-end IBM mainframes based on the Coherent Unix clone; operable under Edos/VS, Edos/VSE, and various IBM DOS variants.

External links

Heinz Nixdorf Museum