€1.3bn SchlumbergerSema deal sealed

Atos Origin has finally completed its €1.3bn cash and shares acquisition of rival services company SchlumbergerSema.

The conclusion of the deal will see the new company, to be called Atos Origin, become a 'tier one' European outsourcing vendor, with annual UK revenues of €1bn.

Atos Origin will almost double its 28,000 headcount, adding 22,000 staff from SchlumbergerSema as well as getting access to some key UK government IT contracts, including the Metropolitan Police, the Department for Work and Pensions, and the Government Gateway.

In a separate announcement, LogicaCMG said it has won a £20m contract to manage the IT for international cultural relations organisation the British Council.

The terms of the six-year deal will see LogicaCMG manage and develop the British Council's IT systems, including the management and support of its UK and global helpdesk, desktop and server support, networks and telephony, and the upgrade of the Council's wide area network.

The British Council has more than 7,000 employees in 110 countries and works to build cultural relationships between the UK and other countries.

The decision to outsource was driven by the Council's five-year plan, Strategy 2005, which aims to better exploit IT when delivering the organisation's services. It will be built on by another five-year plan, Strategy 2010, which will guide the Council after 2005.

David Green, director-general of the British Council, said in a statement: "This partnership is going to be very important to the British Council in helping to focus on IS/IT and ensure that we are absolutely in line, in terms of our IS and IT, with Strategy 2010 and the business strategy for the British Council."

Analyst group Ovum Holway said the deal was "a step in the right direction" for LogicaCMG as it aims for a target of increasing outsourcing revenues to almost a third of its business.