Syntegra, BT's systems integration arm is to acquire US consultancy Control Data Systems, for $340 million.
Control Data Systems is based in Arden Hills, Minneapolis, and employs around 1,000 people in the US, Europe and Asia, with revenues of $180 million. Jim Ousley, the company's president and chief executive said BT would retain all the staff and keep the headquarters in Minneapolis.
The company says its speciality is providing systems integration and electronic business outsourcing services based on Internet technologies.
The acquisition is part of Syntegra's global expansion plans. It has already made similar purchases in France, the Netherlands and Australia. The telecoms giant is currently merging Syntegra with BT's other services business, Syncordia Solutions.
Control Data Systems was originally acquired by CDSI Holding, part of the privately held US investment firm Welsh, Carlson, Anderson and Stowe, for $284 million in 1997. Ousley said Control Data had been looking for some time to be either acquired, sign partnerships or purchase other companies to meet its global ambitions.
He said: "Our customers had demanded more scale, depth and investments from us to do the kind of global projects that they wanted to implement." Syntegra gives Control Data the worldwide networking capabilities that customers had been crying out for, continued Ousley.
The deal signals a watershed for Control Data Systems - the demise of the Control Data name. The company was formed when it was spun off from Control Data Corporation (CDC), following CDC's rapid decline of its mainframe hardware business in the late 1980s. Instead CDC turned to the software and services market.
Ousley said Control Data Systems is working on a new name and branding initiative with Syncordia.
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