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October 1, 1998

LOGICA BUYS US COMPANY CARNEGIE FOR $35M

By CBR Staff Writer

In an effort to build up its presence in the US, Logica Plc, the London-based IT consultancy, has reached an agreement to buy Carnegie Group Inc, a Pittsburgh, Pennsylvania-based customer management company, for $35m. Logica recently announced its intention to grow in the US (CI No 3,492) , as well as Germany and Czech republic through acquisition. Yesterday’s deal is designed to build upon Logica’s North American subsidiary, Logica Inc, which saw revenues of $84m for the 12 months up until June 30. Logica Inc concentrates on the finance, telecommunications and utilities markets and Carnegie’s consultancy and application assembly services are designed to meet the demand from these industries to improve their interaction with their customers. The cost of financing the acquisition will be covered by the profits gained from Carnegie until June 1999. Logica’s corporate development director, Mario Anid, said that Logica Inc margins would improve from its current 7%-8% because Logica Inc would charge a higher price for Carnegie’s technology and services. Carnegie has 300 staff in seven offices and revenues of $16.2m, for the six months to July 1998. Telecommunications operators currently provide most of their revenues, although they are active in government, finance and manufacturing industries.

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