Fujitsu Services is to acquire a majority stake in German outsourcing and consultancy firm TDS, through deals with a total value of about Euros 64m. (£43m).
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The European IT services arm of the Fujitsu Group has signed a contract to buy investor General Atlantic’s stake in TDS for a purchase price of Euros 2.80 per share. Other shareholders are expected to sell their stakes for the same price, giving Fujitsu a 79.1% shareholding in the firm.
TDS saw revenues of Euros 93m in the 2005 financial year. It employs more than 700 people across Germany, Austria and Switzerland.
The acquisition will give Fujitsu the benefit of TDS’s expertise in IT and human resources business process outsourcing, its SAP skills base and IT consulting experience. The company believes this will complement Fujitsu’s focus on design, development and operation of IT infrastructure services.
Fujitsu Services managing director for continental Europe Andrew MacNaughton said, “This is a key milestone in our growth strategy for Europe. Our stake in TDS will enable us to harness our collective strengths and help us to become one of the top IT services players in Germany.”
TDS chief executive Michael Eberhardt said, “The fit of our respective offerings is perfect and will allow us to capitalise on the opportunities the IT services market presents in the future.”
Equity firm General Atlantic’s decision to sell its stake in TDS follows a strategic review announced in June. Fujitsu’s acquisition must be cleared by antitrust regulators before it can be completed.
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