Fujitsu Siemens bags SBS unit for undisclosed sum

Fujitsu Siemens Computers is acquiring Siemens Business Services’ (SBS) international product related services division for an undisclosed sum. The deal will add approximately 200 staff to Fujitsu Siemens Middle East operation. Pending regulatory approval, the transaction is expected to close in April 2006.

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By  Stuart Wilson Published  January 6, 2006

Fujitsu Siemens Computers is acquiring Siemens Business Services’ (SBS) international product related services division for an undisclosed sum. The deal will add approximately 200 staff to Fujitsu Siemens Middle East operation. Pending regulatory approval, the deal is expected to close in April 2006. SBS’ product related services (PRS) unit consists of some 5,000 employees globally spread across 28 countries with revenues of approximately US$1.57 billion for fiscal 2005. The sale forms part of Siemens’ planned restructuring of its SBS subsidiary, which posted losses of US$835m for the year ending September 2005. SBS PRS focuses on the provision of platform-independent services and IT infrastructures. The unit claims to be the sixth largest IT services company worldwide and the second largest IT services provider in Germany. Fujitsu Siemens Computers claims that the deal will allow its customers to benefit from an increased ability to source consulting, design and implementation services from one company, especially in emerging solution segments such as the dynamic data centre and mobility. “This announcement is a key strategic step which continues to build on our vision: understanding you better, serving you best. The customer is our cornerstone, and to deliver on our promise to them, we are continuing to evolve and strengthen our service capabilities through acquiring SBS PRS,” said Fujitsu Siemens Computers CEO Bernd Bischoff. “Over the past few years, we have grown to become an industry-leading provider of solutions for mobility and dynamic data Centre. We are confident that with this agreement we will be able to better service our customers and partners. PRS’ extensive customer knowledge and product expertise can feed back into our development process, leading to a positive impact on the development of our products and solutions. We are convinced that through this additional insight, our company will soon see a positive impact,” he added. “Fujitsu Siemens Computers has proven itself to be a highly valuable partner in the IT arena. They have worked closely together with SBS PRS to bring customers industry-leading solutions,” stated Dr. Klaus Kleinfeld, CEO Siemens AG. “The fusion of PRS into Fujitsu Siemens Computers is a logical step and together the new organization will bring added value to customers and partners. Fujitsu Siemens Computers will continue to be the preferred partner for Siemens in its areas of expertise.” Hiroaki Kurokawa, President, Fujitsu Limited, added: “This announcement remarkably improves the product related service capabilities of Fujitsu Siemens Computers. It is a significant step forward that enables customers to enjoy a more integrated quality of products and its related services than before.” The newly acquired unit will operate as a separate subsidiary within Fujitsu Siemens Computers. While the exact terms of the deal have not been disclosed, Fujitsu Siemens will remain a 50:50 joint venture of Fujitsu Limited and Siemens. According to Fujitsu Siemens Computers, the newly acquired PRS business will maintain its focus on providing end-to-end platform solutions, while high-volume product services will continue to be provided by channel partners. Despite this claim, it remains to be seen how Fujitsu Siemens Computers will manage potential services conflict between SBS PRS operating remit and existing alliance partners — especially systems integrators, IT consultancies and IT services providers working in similar areas.

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