Feeds

LogicaCMG buys its way into top ten

Buys WM Data

New hybrid storage solutions

LogicaCMG is paying £882m for WM Data - a pan-Scandanavian services company.

The price is about 25 per cent higher than shares have been trading at for the last three months. The takeover bid is unaminously backed by the WM Data board of directors. The deal will make the new firm the seventh largest IT services company by revenue in Europe.

The new company will have 40,000 employees in 41 countries and would have brought in revenues of £3bn for the year ended 31 December 2005. This would make the combined company a global top 20 IT services company by revenue and second largest listed IT services firm in Europe.

A spokeswoman for the company said the deal was about growth not cost savings. The deal will support Logica's strong position in France, the Netherlands, and the UK. There is little overlap. If the deal goes through the combined firm should enjoy cost savings of £15m - a spokeswoman said little of this would come from job cuts.

Dr Martin Read, LogicaCMG's chairman, said: "Increasingly, our customers want to do business with a smaller number of larger suppliers who can provide them with a broader range of offerings and support them internationally."

WM Data has about 9,000 employees in Denmark, Finland, Norway, Sweden, Poland and Estonia. WM Data uses Estonia and Poland for offshoring, or nearshoring, but now the firm will have access to LogicaCMG's Indian and central European offshore centres.

WM Data brought in revenues of £681.8m for the year ended 31 December 2005 and a profit of £29.5m.

There's a press release available here - but only if you live in the right country. ®

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
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.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.