EDS To Buy Alcatel Unit

IT services company EDS Corp. is buying Ansaware, the IT services unit of French telecom equipment-maker Alcatel, for an undisclosed amount.

The agreement, which is pending approval from Alcatel employee representatives in France, is expected to close by the end of the first quarter in 2002, an EDS spokesman said. Once the deal closes, Ansaware would become part of EDS France, and EDS would continue to serve Alcatel subsidiaries and leading French companies that receive systems-integration and technical assistance via Alcatel's IT services unit, the spokesman said.

Alcatel says the sale and outsourcing agreement is part of its restructuring plan. Earlier last week, Alcatel said it would eliminate 1,700 jobs in its French carrier equipment unit CIT. The cuts were part of broader staff reductions the company outlined a few months ago.