The Channel logo

News

By | Mark Ballard 20th February 2007 15:00

Logica offloads telecoms biz

Ditching products, beefing services

LogicaCMG has sold its telecoms products division to a private equity consortium for £265m.

The firm said in a statement today that it would use proceeds of the sale to pay £130m into a buyback scheme for shareholders, reduce debt, and buy-out minority interests.

Atlantic Bridge Ventures, which led the buying consortium, has a spread of investments that include Warner Music Group, Russian oil business TNK-BP, and the Siberian Urals Aluminium Company.

The firm said it also had a focus on telecoms infrastructure, semi-conductor and software markets.

LogicaCMG's telecoms products division made about 60 per cent of its business from selling SMS services to mobile operators. It also provided multimedia messaging and voicemail services.

A statement about the deal said revenue at the division last year was flat after currency adjustments, but operating profit had improved "marginally" over the £13.9m it scored in 2005.

It employed 1,700 people in 22 countries, most of whom were expected to move with the sale, which is dependent on the outcome of consultation with employees and the approval of regulators. LogicaCMG would loan the division £15m to be repaid in two years.

LogicaCMG said it wanted to concentrate on developing its IT services business. ®

alert Send corrections

Opinion

Memristor_wafer

Chris Mellor

Execution warrant close to being signed for Fink's folly
Woman cuddles 'sly-looking' Fennec fox. Photo by Shutterstock
Cartoon of employee asking wky boss makes hium wear suspenders (while pincer through open trapdoor remains poised above his head) illustration by Cartoon resource for Shutterstock

Frank Jennings

It's not like my boss painstakingly nurtured the contacts, right?

Features

Girl and computer, photo via Shutterstock
Middle-class terror of engineering also part of problem
Nerd fail photo via Shutterstock
Shouting match
Single market vs. rest of the world