FSC Middle East tight-lipped over impact of Fujitsu deal

No comment on local effect of end of FSC joint venture as Fujitsu buys out Siemens for $560m

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By  Andrew Seymour Published  November 16, 2008

Fujitsu Siemens Computers (FSC) has declined to comment on how its Middle East business is likely to be impacted by Fujitsu’s plans to acquire Siemens’ half of the joint venture.

A spokesperson for FSC’s Middle East operation said there had been no new developments since details of the share purchase agreement emerged earlier this month, adding that the company wasn’t in a position to discuss any local implications for channel partners at this stage.

Fujitsu is set to pay around $560m to acquire Siemens' 50% stake in the JV that the pair formed nine years ago. FSC will become part of Fujitsu from April next year providing the transaction is approved by government agencies. In the meantime, FSC will continue to operate as a joint venture.

IT infrastructure and data storage specialist FSC reported a $130m pre-tax profit on sales of $8.2 billion during its last fiscal year, but Siemens is keen to offload its stake in order to focus on the energy, industry and healthcare sectors.

Fujitsu, meanwhile, believes the move will benefit its systems and services business.

"Fully integrating Fujitsu Siemens Computers into the Fujitsu Group fits perfectly into our global growth strategy," said Kuniaki Nozoe, president at Fujitsu.

"We're inheriting a strong customer base in EMEA and an R&D capability that can support our global product development, not to mention a tremendously talented group of employees who share our values and commitment to grow with our customers as their trusted business partner," added Nozoe.

Analysts expect the implications of the deal to be felt more in Europe than any of the emerging markets.

Ian Brown, senior analyst at advisory and consulting firm Ovum, said: “From a Fujitsu perspective on IT services, the buy-out makes a lot of sense. FSC has a successful support services business that already shares Fujitsu’s own extensive field force, and we would expect to see the unit, which has a number of large managed services clients in the UK and Germany, folded into Fujitsu Services at some point.”

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