Business & Finance
News
8/30/2005
12:49 PM
50%
50%

Atos Origin Officials Mum On Possible T-Systems Merger

Combined companies could better compete for global IT services deals.

An Atos Origin official on Tuesday declined to comment on reports that the Paris IT services company is in merger talks with Deutsche Telekom's T-Systems unit. "We've seen the reports but we're not saying anything at this time," the spokesman says.

The German newspaper Handelsblatt last week reported that T-Systems is looking to acquire Atos Origin, which holds the contract to implement IT systems for the Beijing Olympic Games. Officials at T-Systems weren't immediately available to comment.

While talk about the merger is purely speculative, one analyst thinks such a move would make sense. Both Atos Origin and T-Systems have strong European outsourcing practices, but neither is large enough to compete consistently against global companies such as IBM or EDS for worldwide contracts. "Success in outsourcing is often about scale, and combining the two firms would give them that scale," says Katherina Grimme, an analyst at Ovum Research.

Atos Origin recently won a $100 million deal to provide IT services to Premiere, the leading pay-TV operator in Germany and Austria. ADP Telecom, an operator of Wi-Fi hot-spots in France, recently tapped T-Systems for support services.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 14, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program.
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.