Rumors reported in the London Financial Times suggest that British Telecommunications Plc is close to making a 200m-pound ($316m) acquisition of Arden Hills, Minnesota-based systems integrator Control Data Systems Inc. BT immediately denounced the talk as speculation.
Control Data may not appear to be an obvious target for BT, following its seemingly endless restructuring activities over the past ten years. From its roots as a mainframe developer, Control Data has flirted with product distribution and computer aided design (CAD) development on its way to its current mix of e-commerce and systems integration services. It also entered private ownership in 1997 when it was acquired by US investment company Welsh, Carson, Anderson & Stowe.
Despite these ups and downs, Control Data should not be ruled out as a potential takeover candidate for BT. Control Data would bring more than 1,000 consultants and a greater US presence to Syntegra, BT’s own $669m systems integration company. Syntegra itself currently has around 4,000 employees of its own, about half of which are outside of the UK. Few, though, are currently based in the US.
The rumors come at a time when BT is intent on expanding its interests in global IT services. BT is expected to announce in July a new BT Solutions division incorporating both Syntegra and its $1.3bn managed services arm, Syncordia Solutions. US acquisitions would appear to be necessary to give the new entity greater global reach.
