Finsiel SpA could be the latest target for expansionist Dutch outsourcing vendor Getronics NV, according to the Italian press. A report in Sunday’s La Repubblica newspaper said that Amsterdam-based Getronics was negotiating with Telecom Italia SpA, Finsiel’s parent company, to achieve an autumn sale of Italy’s largest services company.
Telecom Italia immediately said the rumor was unfounded. Prior to the telco’s contested takeover by Ivrea-based Olivetti SpA Italian in May 1999, Finsiel’s sale looked inevitable. Now the telco has moderated its view to suggest that it is seeking a ‘strategic alliance’ for its IT services arm instead. Although the telco has denied that discussions with Getronics are underway, $1.15bn Finsiel still looks likely to be sold off in the near future. Having disposed of its own Olsy IT services unit in 1998 (ironically to Wang Global which then sold out to Getronics in June 1999) Olivetti’s long term interest in Finsiel appears limited.
Any move by Getronics, which now claims to be the world’s fifth largest IT services vendor, to buy Finsiel may look surprising given that it has not yet fully integrated its $2bn takeover of Wang Global. Furthermore, Getronics has stated publicly that it wishes to concentrate future growth in countries where it is poorly represented, such as Germany and Sweden, rather than Italy, where it already has a sizable business courtesy of Wang’s Olsy takeover.
On the other hand, Getronics has said it is likely to make two further acquisitions in the second half of 1999. These will be aided by the expected 500m euro ($528.4m) raised from the impending sale of its hardware reselling business. Combined with the recently renamed GetronicsOlivetti operation, Finsiel would give Getronics a commanding position in the Italian outsourcing market generally as well as through Finsiel’s near monopoly on Italian public sector contracts.
Getronics joins the list of possible suitors for Finsiel, which already includes US-based services giant EDS and Germany’s Siemens.
