Feeds

LogicaCMG buys its way into top ten

Buys WM Data

Boost IT visibility and business value

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. ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.