The companies withheld the financial details of the acquisition, but SGL said the deal would save it 10m euros in IT costs over the length of the contract. Malkoff, France-based Thales IS, which is owned by defense contractor Thales Group, will provide SGL with SAP development and IT infrastructure services.
SGL’s move continues the trend among German companies to sell off their captive IT departments. Last December, IT services provider Siemens Business Services purchased RAG Informatik, the IT subsidiary of German coal production company RAG, and several others are looking to follow suit with possible buyers including IBM, Capgemini, CSC, T-Systems and Tata Consulting Services.
Thales itself has long been considered an acquisition target, after Paris, France-based GFI’s failed attempt to purchase it in 2002. GFI failed to pull off the deal after banks decided to withhold potential funding.
