Feeds

IBM gives up on Schlumberger Ireland buyout

Competition Authority intervenes

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

IBM has decided against buying the Irish arm of disaster recovery company Schlumberger, following a decision by the Competition Authority to block the deal.

Although IBM could elect to slog it out in the courts with the Competition Authority, it has decided to simply exclude Schlumberger's Irish operation from a global €200m deal that should strengthen IBM's position in the disaster recovery business in Europe. Citing representatives from IBM, the Irish Times reported today that the long delay that would likely be part of an appeals process has prompted the firm to pass on buying Schlumberger's Irish business.

The paper also notes that the decision by Big Blue leaves the fate of Schlumberger Business Continuity Services (Ireland) Limited up in the air. Without a global presence, the unit may struggle to win contracts with multinationals, although it could represent an attractive opportunity for other disaster recovery specialists or even for Schlumberger Ireland management.

The Competition Authority handed down its decision on the matter over a month ago in what was the first such ruling under merger control legislation introduced in Ireland last year. At the time, the authority said that the takeover would dramatically reduce competition in the Irish disaster recovery market, giving the merged entity an 80 per cent stranglehold on the sector.

Schlumberger Business Continuity Services (Ireland) Limited is the biggest provider of disaster recovery services and "hot seats" in Ireland, accounting for about €10m of a €15m market. IBM is its nearest rival.

Disaster recovery involves the activation of back-up data and computer systems in the event of a fire, flood or other incident that could take a whole office building out of commission. Companies like IBM and Schlumberger keep computer systems warm, so that when a crisis occurs, large firms can keep operating using backed-up data and hot desks, or fully equipped office space that staff can temporarily re-locate to.

In April, the two corporations agreed on a takeover by IBM of all of Schlumberger's disaster recovery sites globally. This deal included the transfer of some 750 clients and 260 employees, which would be folded into IBM Global Services. Schlumberger, a firm involved mainly in energy and natural resources, has been involved in a long process of selling off its non-core assets.

Copyright © 2004, ENN

Related stories

Apple of IBM's eye?
IBM buys disaster recovery biz
Schlumberger Sema: UK eHealth market poised for substantial growth

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.