SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
________________________
SCHEDULE 13D
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(Amendment No. )
DecisionOne Holdings Corp.
___________________________________________________________________________
(Name of Issuer)
Common Stock, $.01 par value
___________________________________________________________________________
(Title of Class of Securities)
24345601000
___________________________________________________________________________
(CUSIP Number)
Laura VanBuren William J. Hewitt, Esq.
Welsh, Carson, Anderson Reboul, MacMurray, Hewitt,
& Stowe Maynard & Kristol
320 Park Avenue 45 Rockefeller Plaza
New York, NY 10022 New York, NY 10111
Tel. (212) 893-9500 Tel. (212) 841-5700
___________________________________________________________________________
(Persons Authorized to Receive Notices and Communications)
May 4, 1997
___________________________________________________________________________
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to
report the acquisition which is the subject of this Schedule 13D, and is
filing this schedule because of Rule 13d-1(b)(3) or (4), check the
following: [ ].
<PAGE>
CUSIP No. 24345601000 Page 2 of 19 Pages
___________________________________________________________________________
1) Name of Reporting Person Welsh, Carson,
S.S. or I.R.S. Identification Anderson & Stowe VI,
No. of Above Person L.P.
___________________________________________________________________________
2) Check the Appropriate Box (a) [ X ]
if a Member of a Group (b) [ ]
___________________________________________________________________________
3) SEC Use Only
___________________________________________________________________________
4) Source of Funds Not Applicable
___________________________________________________________________________
5) Check if Disclosure of Not Applicable
Legal Proceedings is
Required Pursuant to
Item 2(d) or 2(e)
___________________________________________________________________________
6) Citizenship or Place Delaware
of Organization
___________________________________________________________________________
Number of 7) Sole Voting 2,266,410 shares of
Shares Beneficially Power Common Stock, $.01
Owned by Each par value ("Common
Reporting Person Stock")
With: __________________________________________________
8) Shared Voting
Power -0-
__________________________________________________
9) Sole Disposi- 2,266,410 shares of
tive Power Common Stock
__________________________________________________
10) Shared Dis-
positive Power -0-
__________________________________________________
11) Aggregate Amount Beneficially 2,266,410 shares of
Owned by Each Reporting Person Common Stock
___________________________________________________________________________
12) Check if the Aggregate
Amount in Row (11)
Excludes Certain Shares
___________________________________________________________________________
13) Percent of Class
Represented by 8.2%
Amount in Row (11)
___________________________________________________________________________
14) Type of Reporting
Person PN
<PAGE>
CUSIP No. 24345601000 Page 3 of 19 Pages
___________________________________________________________________________
1) Name of Reporting Person Welsh, Carson,
S.S. or I.R.S. Identification Anderson &
No. of Above Person Stowe IV
___________________________________________________________________________
2) Check the Appropriate Box (a) [ X ]
if a Member of a Group (b) [ ]
___________________________________________________________________________
3) SEC Use Only
___________________________________________________________________________
4) Source of Funds Not Applicable
___________________________________________________________________________
5) Check if Disclosure of Not Applicable
Legal Proceedings is
Required Pursuant to
Item 2(d) or 2(e)
___________________________________________________________________________
6) Citizenship or Place New York
of Organization
___________________________________________________________________________
Number of 7) Sole Voting 4,155,947 shares of
Shares Beneficially Power Common Stock
Owned by Each
Reporting Person __________________________________________________
With: 8) Shared Voting
Power -0-
__________________________________________________
9) Sole Disposi- 4,155,947 shares of
tive Power Common Stock
__________________________________________________
10) Shared Dis-
positive Power -0-
__________________________________________________
11) Aggregate Amount Beneficially 4,155,947 shares of
Owned by Each Reporting Person Common Stock
___________________________________________________________________________
12) Check if the Aggregate
Amount in Row (11)
Excludes Certain Shares
___________________________________________________________________________
13) Percent of Class
Represented by 14.9%
Amount in Row (11)
___________________________________________________________________________
14) Type of Reporting
Person PN
<PAGE>
CUSIP No. 24345601000 Page 4 of 19 Pages
___________________________________________________________________________
1) Name of Reporting Person WCAS Capital
S.S. or I.R.S. Identification Partners, L.P.
No. of Above Person
___________________________________________________________________________
2) Check the Appropriate Box (a) [ X ]
if a Member of a Group (b) [ ]
___________________________________________________________________________
3) SEC Use Only
___________________________________________________________________________
4) Source of Funds Not Applicable
___________________________________________________________________________
5) Check if Disclosure of Not Applicable
Legal Proceedings is
Required Pursuant to
Item 2(d) or 2(e)
___________________________________________________________________________
6) Citizenship or Place Delaware
of Organization
___________________________________________________________________________
Number of Shares 7) Sole Voting 2,914,857 shares
Beneficially Power of Common Stock
Owned by Each
Reporting Person
With: __________________________________________________
8) Shared Voting
Power -0-
__________________________________________________
9) Sole Disposi- 2,914,857 shares
tive Power of Common Stock
__________________________________________________
10) Shared Dis-
positive Power -0-
__________________________________________________
11) Aggregate Amount Beneficially 2,914,857 shares
Owned by Each Reporting Person of Common Stock
___________________________________________________________________________
12) Check if the Aggregate
Amount in Row (11)
Excludes Certain Shares
___________________________________________________________________________
13) Percent of Class
Represented by 10.5%
Amount in Row (11)
___________________________________________________________________________
14) Type of Reporting
Person PN
<PAGE>
CUSIP No. 24345601000 Page 5 of 19 Pages
___________________________________________________________________________
1) Name of Reporting Person WCAS Capital
S.S. or I.R.S. Identification Partners II,
No. of Above Person L.P.
___________________________________________________________________________
2) Check the Appropriate Box (a) [ X ]
if a Member of a Group (b) [ ]
___________________________________________________________________________
3) SEC Use Only
___________________________________________________________________________
4) Source of Funds Not Applicable
___________________________________________________________________________
5) Check if Disclosure of Not Applicable
Legal Proceedings is
Required Pursuant to
Item 2(d) or 2(e)
___________________________________________________________________________
6) Citizenship or Place Delaware
of Organization
___________________________________________________________________________
Number of Shares 7) Sole Voting 297,606 shares
Beneficially Power of Common Stock
Owned by Each (issuable upon
Reporting Person exercise of
With: warrants)
__________________________________________________
8) Shared Voting
Power -0-
__________________________________________________
9) Sole Disposi- 297,606 shares
tive Power of Common Stock
(issuable upon
exercise of
warrants)
__________________________________________________
10) Shared Dis-
positive Power -0-
__________________________________________________
11) Aggregate Amount Beneficially 297,606 shares
Owned by Each Reporting Person of Common Stock
(issuable upon
exercise of
warrants)
<PAGE>
CUSIP No. 24345601000 Page 6 of 19 Pages
___________________________________________________________________________
12) Check if the Aggregate
Amount in Row (11)
Excludes Certain Shares
___________________________________________________________________________
13) Percent of Class
Represented by 1.1%
Amount in Row (11)
___________________________________________________________________________
14) Type of Reporting
Person PN
<PAGE>
CUSIP No. 24345601000 Page 7 of 19 Pages
___________________________________________________________________________
1) Name of Reporting Person WCAS Venture
S.S. or I.R.S. Identification Partners
No. of Above Person
___________________________________________________________________________
2) Check the Appropriate Box (a) [ X ]
if a Member of a Group (b) [ ]
___________________________________________________________________________
3) SEC Use Only
___________________________________________________________________________
4) Source of Funds Not Applicable
___________________________________________________________________________
5) Check if Disclosure of Not Applicable
Legal Proceedings is
Required Pursuant to
Item 2(d) or 2(e)
___________________________________________________________________________
6) Citizenship or Place New York
of Organization
___________________________________________________________________________
Number of Shares 7) Sole Voting 18,630 shares
Beneficially Power of Common Stock
Owned by Each
Reporting Person
With: __________________________________________________
8) Shared Voting
Power -0-
__________________________________________________
9) Sole Disposi- 18,630 shares
tive Power of Common Stock
__________________________________________________
10) Shared Dis-
positive Power -0-
__________________________________________________
11) Aggregate Amount Beneficially 18,630 shares
Owned by Each Reporting Person of Common Stock
___________________________________________________________________________
12) Check if the Aggregate
Amount in Row (11)
Excludes Certain Shares
___________________________________________________________________________
13) Percent of Class
Represented by 0.1%
Amount in Row (11)
___________________________________________________________________________
14) Type of Reporting
Person PN
<PAGE>
CUSIP No. 24345601000 Page 8 of 19 Pages
___________________________________________________________________________
1) Name of Reporting Person WCAS Information
S.S. or I.R.S. Identification Partners, L.P.
No. of Above Person
___________________________________________________________________________
2) Check the Appropriate Box (a) [ X ]
if a Member of a Group (b) [ ]
___________________________________________________________________________
3) SEC Use Only
___________________________________________________________________________
4) Source of Funds Not Applicable
___________________________________________________________________________
5) Check if Disclosure of
Legal Proceedings is Not Applicable
Required Pursuant to
Item 2(d) or 2(e)
___________________________________________________________________________
6) Citizenship or Place Delaware
of Organization
___________________________________________________________________________
Number of Shares 7) Sole Voting 51,176 shares
Beneficially Power of Common Stock
Owned by Each
Reporting Person
With: __________________________________________________
8) Shared Voting
Power -0-
__________________________________________________
9) Sole Disposi- 51,176 shares
tive Power of Common Stock
__________________________________________________
10) Shared Dis-
positive Power -0-
__________________________________________________
11) Aggregate Amount Beneficially 51,176 shares
Owned by Each Reporting Person of Common Stock
___________________________________________________________________________
12) Check if the Aggregate
Amount in Row (11)
Excludes Certain Shares
___________________________________________________________________________
13) Percent of Class
Represented by 0.2%
Amount in Row (11)
___________________________________________________________________________
14) Type of Reporting
Person PN
<PAGE>
CUSIP No. 24345601000 Page 9 of 19 Pages
Schedule 13D
____________
Item 1. Security and Issuer.
___________________
This statement relates to the Common Stock, $.01 par value (the
"Common Stock"), of DecisionOne Holdings Corp., a Delaware corporation
("DecisionOne" or the "Issuer"). The principal executive offices of the
Issuer are located at 50 Eas Swedesford Road, Frazer, Pennsylvania 19355.
Item 2. Identity and Background.
_______________________
(a) Pursuant to Rule 13d-1(f)(1)-(2) of Regulation 13D-G of the
General Rules and Regulations under the Securities Exchange Act of 1934, as
amended (the "Act"), the undersigned hereby file this statement on Schedule
13D on behalf of Welsh, Carson, Anderson & Stowe VI, L.P., a Delaware
limited partnership ("WCAS VI"), WCAS Capital Partners, L.P., a Delaware
limited partnership ("WCAS CP"), WCAS Capital Partners II, L.P., a Delaware
limited partnership ("WCAS CP II"), Welsh, Carson, Anderson and Stowe VI, a
New York limited partnership ("WCAS IV"), WCAS Venture Partners, a New York
limited partnership ("WCAS VP"), and WCAS Information Partners, L.P., a
Delaware limited partnership ("WCAS IP"). WCAS VI, WCAS CP, WCAS CP II,
WCAS IV, WCAS VP and WCAS IP are sometimes hereinafter referred to as the
"Reporting Persons". The Reporting Persons are making this single, joint
filing because they may be deemed to constitute a "group" within the
meaning of Section 13(d)(3) of the Act. The Agreement among the Reporting
Persons to file as a group (the "Group Agreement") is attached hereto as
Exhibit A.
As further described in Item 6 below, WCAS VI, WCAS IV and WCAS
CP have entered into a Voting Agreement and Irreveocable Proxy dated as of
May 4, 1997 with Quaker Holding Co. ("Quaker"), J.H. Whitney & Co.
("Whitney") and the Issuer (the "Voting Agreement"). Pursuant to Rule 13d-
5(b)(1) under the Act, such Reporting Persons together with the other
parties to the Voting Agreement may also be deemed to constitute a group,
however this statement on Schedule 13D is being filed solely on behalf of
the Reporting Persons and not on behalf of any other members of such group.
The Reporting Persons do not directly or indirectly beneficially own any
securities of the Issuer other than those reported herein as being owned by
them.
WCAS VI
_______
(b)-(c) WCAS VI is a Delaware limited partnership. The
principal business of WCAS VI is that of a private investment partnership.
WCAS VI's principal business and principal office address is 320 Park
Avenue, Suite 2500, New York, New York 10022. The sole general partner of
WCAS VI is WCAS VI Partners, L.P., a Delaware limited partnership ("VI
Partners").<PAGE>
CUSIP No. 24345601000 Page 10 of 19 Pages
WCAS CP
_______
(b)-(c) WCAS CP is a Delaware limited partnership. The
principal business of WCAS CP is that of a private investment partnership.
WCAS CP's principal business and principal office address is 320 Park
Avenue, Suite 2500, New York, New York 10022. The sole general partner of
WCAS CP is WCAS CP Partners, a New York general partnership ("CP
Partners").
WCAS CP II
__________
(b)-(c) WCAS CP II is a Delaware limited partnership. The
principal business of WCAS CP II is that of a private investment
partnership. WCAS CP II's principal business and principal office address
is 320 Park Avenue, Suite 2500, New York, New York 10022. The sole
general partner of WCAS CP II is WCAS CP II Partners, a New Jersey general
partnership ("CP II Partners").
WCAS IV
_______
(b)-(c) WCAS IV is a New York limited partnership. The
principal business of WCAS IV is that of a private investment partnership.
WCAS IV's principal business and principal office address is 320 Park
Avenue, Suite 2500, New York, New York 10022. The sole general partner of
WCAS IV is WCAS IV Partners, a New York general partnership ("IV
Partners").
WCAS VP
_______
(b)-(c) WCAS VP is a New York limited partnership. The
principal business of WCAS VP is that of a private investment partnership.
WCAS VP's principal business and principal office address is 320 Park
Avenue, Suite 2500, New York, New York 10022. The sole general partner of
WCAS VP is WCAS Ventures, a New York general partnership ("VP").
WCAS IP
_______
(b)-(c) WCAS IP is a Delaware limited partnership. The
principal business of WCAS IP is that of a private investment partnership.
WCAS IP's principal business and principal office address is 320 Park
Avenue, Suite 2500, New York, New York 10022. The sole general partner of
WCAS IP is WCAS INFO Partners, a Delaware general partnership ("INFO
Partners").<PAGE>
CUSIP No. 24345601000 Page 11 of 19 Pages
VI Partners
___________
(b)-(c) VI Partners is a Delaware limited partnership. The
principal business of VI Partners is that of acting as the general partner
of WCAS VI. VI Partners' principal business and principal office address
is 320 Park Avenue, Suite 2500, New York, New York 10022. The general
partners of VI Partners are citizens of the United States, and their
respective principal business addresses and principal occupations are set
forth below.
CP Partners
___________
(b)-(c) CP Partners is a New York general partnership. The
principal business of CP Partners is that of acting as the general partner
of WCAS CP. CP Partners' principal business and principal office address
is 320 Park Avenue, Suite 2500, New York, New York 10022. The general
partners of CP Partners are citizens of the United States and their
respective names, principal business addresses and principal occupations
are set forth below.
CP II Partners
______________
(b)-(c) CP II Partners is a New Jersey general partnership.
The principal business of CP II Partners is that of acting as the general
partner of WCAS CP II. CP II Partners' principal business and principal
office address is 320 Park Avenue, Suite 2500, New York, New York 10022.
The general partners of CP II Partners are citizens of the United States
and their respective names, principal business addresses and principal
occupations are set forth below.
IV Partners
___________
(b)-(c) VI Partners is a New York general partnership. The
principal business of IV Partners is that of acting as the general partner
of WCAS IV. IV Partners' principal business and principal office address
is 320 Park Avenue, Suite 2500, New York, New York 10022. The general
partners of IV Partners are citizens of the United States, and their
respective principal business addresses and principal occupations are set
forth below.
VP
__
(b)-(c) VP is a New York general partnership. The principal
business of VP is that of acting as the general partner of WCAS VP. VP's
principal business and principal office address is 320 Park Avenue, Suite
2500, New York, New York 10022. The general partners of VP are citizens
of the United States and their respective names, principal business
addresses and principal occupations are set forth below.
<PAGE>
CUSIP No. 24345601000 Page 12 of 19 Pages
INFO Partners
_____________
(b)-(c) INFO Partners is a Delaware general partnership. The
principal business of INFO Partners is that of acting as the general
partner of WCAS IP. INFO Partners' principal business and principal office
address is 320 Park Avenue, Suite 2500, New York, New York 10022. The
general partners of INFO Partners are citizens of the United States and
their respective names, principal business addresses and principal
occupations are set forth below.
General Partners Address Occupation
________________ _______ __________
Patrick J. Welsh Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners, CP
320 Park Avenue Partners, CP II
Suite 2500 Partners, IV
New York, NY 10022 Partners and VP
Russell L. Carson Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners, CP
320 Park Avenue Partners, CP II
Suite 2500 Partners, IV
New York, NY 10022 Partners and VP
Bruce K. Anderson Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners, CP
320 Park Avenue Partners, CP II
Suite 2500 Partners, IV
New York, NY 10022 Partners, VP and
INFO Partners
Richard H. Stowe Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners, CP
320 Park Avenue Partners, CP II
Suite 2500 Partners, IV
New York, NY 10022 Partners and VP
Charles G. Moore, III Welsh, Carson, Ander- General Partner,
son & Stowe CP Partners,
320 Park Avenue CP II Partners
Suite 2500 and VP
New York, NY 10022
<PAGE>
CUSIP No. 24345601000 Page 13 of 19 Pages
Andrew M. Paul Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners, CP
320 Park Avenue Partners, CP II
Suite 2500 Partners, IV
New York, NY 10022 Partners and VP
Thomas E. McInerney Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners, CP
320 Park Avenue Partners, CP II
Suite 2500 Partners, IV
New York, NY 10022 Partners, VP and
INFO Partners
Laura VanBuren Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners,
320 Park Avenue CP II Partners
Suite 2500 and VP
New York, NY 10022
James B. Hoover Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners and
320 Park Avenue CP II Partners
Suite 2500
New York, NY 10022
Robert A. Minicucci Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners and
320 Park Avenue CP II Partners
Suite 2500
New York, NY 10022
Anthony J. deNicola Welsh, Carson, Ander- General Partner,
son & Stowe VI Partners and
320 Park Avenue CP II Partners
Suite 2500
New York, NY 10022
(d) None of the entities or persons identified in this Item 2
has, during the last five years, been convicted in a criminal proceeding
(excluding traffic violations or similar misdemeanors).
(e) None of the entities or persons identified in this Item 2
has, during the last five years, been a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result
of such proceeding was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities
subject to, federal or state securities laws or finding any violation with
respect to such laws.
<PAGE>
CUSIP No. 24345601000 Page 14 of 19 Pages
Item 3. Source and Amount of Funds and Other Consideration.
__________________________________________________
Not Applicable.
Item 4. Purpose of Transaction.
______________________
See Item 6 below.
Item 5. Interest in Securities of the Issuer.
____________________________________
The following information is based on a total of 27,817,832
shares of Common Stock outstanding as of April 30, 1997 (based on
representations of the Issuer), and, with respect to WCAS CP II, gives
effect to the exercise of presently-exercisable Warrants to Purchase Common
Stock:
(a)
WCAS VI and VI Partners
_______________________
WCAS VI owns 2,266,410 shares of Common Stock, or approximately
8.2% of the Common Stock outstanding. VI Partners, as the general
partner of WCAS VI, may be deemed to beneficially own the securities
owned by WCAS VI.
WCAS CP and CP Partners
_______________________
WCAS CP owns 2,914,857 shares of Common Stock, or approximately
10.5% of the Common Stock outstanding. CP Partners, as the general
partner of WCAS CP, may be deemed to beneficially own the securities
owned by WCAS CP.
WCAS CP II and CP II Partners
_____________________________
WCAS CP II owns 297,606 shares of Common Stock, or approximately
1.1% of the Common Stock outstanding. CP II Partners, as the general
partner of WCAS CP II, may be deemed to beneficially own the
securities owned by WCAS CP II.
WCAS IV and IV Partners
_______________________
WCAS VI owns 4,155,947 shares of Common Stock, or approximately
14.9% of the Common Stock outstanding. IV Partners, as the general
partner of WCAS IV, may be deemed to beneficially own the securities
owned by WCAS IV.
<PAGE>
CUSIP No. 24345601000 Page 15 of 19 Pages
WCAS VP and VP
______________
WCAS VP owns 18,630 shares of Common Stock, or approximately 0.1%
of the Common Stock outstanding. VP, as the general partner of WCAS
VP, may be deemed to beneficially own the securities owned by WCAS VP.
WCAS IP and INFO Partners
_________________________
WCAS IP owns 51,176 shares of Common Stock, or approximately 0.2%
of the Common Stock outstanding. INFO Partners, as the general
partner of WCAS IP, may be deemed to beneficially own the securities
owned by WCAS IP.
General Partners of VI Partners, CP Partners, CP
II Partners, IV Partners, VP and INFO Partners
________________________________________________
(i) Patrick J. Welsh owns 64,456 shares of Common Stock, or
approximately 0.2% of the Common Stock outstanding.
(ii) Russell L. Carson owns 64,456 shares of Common Stock, or
approximately 0.2% of the Common Stock outstanding.
(iii) Bruce K. Anderson owns 64,456 shares of Common Stock
(including 21,685 shares held in an IRA account), or approximately
0.2% of the Common Stock outstanding.
(iv) Richard H. Stowe owns 13,721 shares of Common Stock, or less
than 0.1% of the Common Stock outstanding.
(v) Charles G. Moore, III owns 6,911 shares of Common Stock, or
less than 0.1% of the Common Stock outstanding.
(vi) Andrew M. Paul owns 15,061 shares of Common Stock, or less
than 0.1% of the Common Stock outstanding.
(vii) Thomas E. McInerney owns 31,377 shares of Common Stock, or
approximately 0.1% of the Common Stock outstanding.
(viii) Laura VanBuren owns 2,725 shares of Common Stock, or less
than 0.1% of the Common Stock outstanding.
(ix) James B. Hoover owns 9,411 shares of Common Stock, or less
than 0.1% of the Common Stock outstanding.
(x) Robert A. Minicucci owns 8,124 shares of Common Stock, or
less than 0.1% of the Common Stock outstanding.
<PAGE>
CUSIP No. 24345601000 Page 16 of 19 Pages
(xi) Anthony J. deNicola owns 5,411 shares of Common Stock, or
less than 0.1% of the Common Stock outstanding.
(b) The general partners of each of VI Partners, CP Partners, CP
II Partners, IV Partners, VP and INFO Partners may be deemed to share the
power to vote or direct the voting of and to dispose or direct the
disposition of the shares owned by WCAS VI, WCAS CP, WCAS CP II, WCAS IV,
WCAS VP and WCAS IP, respectively. Each of the general partners of VI
Partners, CP Partners, CP II Partners, IV Partners, VP and INFO Partners
disclaim beneficial ownership of all shares other than the shares he or she
owns directly or by virtue of his or her indirect pro rata interest, as a
partner of VI Partners, CP Partners, CP II Partners, IV Partners, VP and/or
INFO Partners, as the case may be, in the shares owned by WCAS VI, WCAS CP,
WCAS CP II, WCAS IV, WCAS VP and/or WCAS IP.
(c) Except as described in this statement, none of the entities
or persons named in Item 2 has effected any transaction in the Issuer's
securities in the past 60 days.
(d) Except as described in this statement, no person has the
power to direct the receipt of dividends on or the proceeds of sales of the
shares of Common Stock owned by WCAS VI, WCAS CP, WCAS CP II, WCAS IV, WCAS
VP or WCAS IP.
(e) Not Applicable.
Item 6. Contracts, Arrangements, Understandings or
Relationships with Respect to Securities
of the Issuer.
__________________________________________
On May 4, 1997 the Issuer entered into an Agreement and Plan of
Merger with Quaker (the "Merger Agreement"), providing for, among other
things, the merger of Quaker with and into the Issuer (the "Merger"). The
Merger Agreement is incorporated herein as Exhibit B hereto by reference to
Exhibit 2.1 to the Issuer's Form 8-K dated May 4, 1997, as filed with the
Securities and Exchange Commission on May 6, 1997 (the "Form 8-K"). Any
description of the Merger Agreement is qualified in its entirety by
reference thereto. As a condition to Quaker entering into the Merger
Agreement, contemporaneously with the execution thereof certain
stockholders of the Issuer, including three of the Reporting Persons,
entered into the Voting Agreement. The Voting Agreement is incorporated
herein as Exhibit C hereto by reference to Exhibit 2.2 to the Form 8-K.
Any description of the Voting Agreement is qualified in its entirety by
reference thereto.
Pursuant to the Voting Agreement, WCAS VI, WCAS IV and WCAS CP
have agreed to vote 1,284,060, 2,559,656 and 1,447,016 shares,
respectively, of Common Stock (the "Voting Agreement Shares") to approve
and adopt the Merger Agreement, the Merger and all agreements relating to
the Merger and any actions related thereto at any meeting of stockholders
of the Issuer, and to appoint Quaker as proxy for and on behalf of them to
vote the Voting Agreement Shares.
The Reporting Persons have also agreed under the Voting Agreement
that during the time that the Voting Agreement is in effect they will not
sell, transfer, assign, encumber or otherwise dispose of any of the Voting
Agreement Shares or enter into any contract, option or other arrangement or
understanding with respect to the direct or indirect sale, assignment,
transfer, encumbrance or other disposition of any of the Voting Agreement
Shares. The Voting Agreement will remain in effect until the earlier of
the effectiveness of the Merger or the termination of the Merger Agreement,
as more fully described in the Voting Agreement.
Item 7. Material to Be Filed as Exhibits.
________________________________
Exhibit A - Group Agreement (Appears at Page 19)
Exhibit B - Merger Agreement (Incorporated by Reference to
Exhibit 2.1 to the Issuer's Form 8-K dated May 4, 1997, as filed with the
Securities and Exchange Commission on May 6, 1997.)
Exhibit C - Voting Agreement (Incorporated by Reference to
Exhibit 2.2 to the Issuer's Form 8-K dated May 4, 1997, as filed with the
Securities and Exchange Commission on May 6, 1997.)
<PAGE>
CUSIP No. 24345601000 Page 17 of 19 Pages
Signature:
_________
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
WELSH, CARSON, ANDERSON & STOWE VI, L.P.
By: WCAS VI Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
WELSH, CARSON, ANDERSON & STOWE IV
By: WCAS IV Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
WCAS CAPITAL PARTNERS, L.P.
By: WCAS CP Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
WCAS CAPITAL PARTNERS II, L.P.
By: WCAS CP II Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
WCAS VENTURE PARTNERS
By: WCAS Ventures, General Partner
By /s/ Thomas E. McInerney
General Partner
WCAS INFORMATION PARTNERS, L.P.
By: WCAS IP Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
Dated: May 14, 1997
<PAGE>
CUSIP No. 24345601000 Page 18 of 19 Pages
EXHIBIT A
AGREEMENT
OF
WELSH, CARSON, ANDERSON & STOWE VI, L.P.
WELSH, CARSON, ANDERSON & STOWE IV
WCAS CAPITAL PARTNERS, L.P.
WCAS CAPITAL PARTNERS II, L.P.
WCAS INFORMATION PARTNERS, L.P.
AND
WCAS VENTURE PARTNERS
PURSUANT TO RULE 13d-1(f)
_________________________
The undersigned hereby agree that the statement on Schedule 13D
to which this Agreement is annexed as Exhibit A is filed on behalf of each
of them in accordance with the provisions of Rule 13d-1(f) under the
Securities Exchange Act of 1934, as amended.
WELSH, CARSON, ANDERSON & STOWE VI, L.P.
By: WCAS VI Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
WELSH, CARSON, ANDERSON & STOWE IV
By: WCAS IV Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
WCAS CAPITAL PARTNERS, L.P.
By: WCAS CP Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
WCAS CAPITAL PARTNERS II, L.P.
By: WCAS CP II Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
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CUSIP No. 24345601000 Page 19 of 19 Pages
WCAS VENTURE PARTNERS
By: WCAS Ventures, General Partner
By /s/ Thomas E. McInerney
General Partner
WCAS INFORMATION PARTNERS, L.P.
By: WCAS IP Partners, General Partner
By /s/ Thomas E. McInerney
General Partner
Dated: May 14, 1997
