BT's Syntegra to buy Control Data Systems

Syntegra, the systems integrator owned by British Telecommunications (BT) will pay $US340 million to acquire Control Data Systems, a Minnesota-based company that provides systems integration and electronic-commerce outsourcing services, the companies announced yesterday.

The acquisition will expand Control Data's reach and give Syntegra a foothold in the U.S., as well as create an electronic-commerce-focused systems-integration powerhouse, officials said in a teleconference.

"Syntegra is attempting to dramatically grow their integration business, and this establishes a major presence in the U.S., will expand both our presences in Asia and, of course, will dramatically grow our presence in Europe," said James Ousley, president and chief executive officer of Control Data.

"For our size company our customers were demanding that we have more scale, more depth and more wherewithal" to do larger, global projects, Ousley said. A telecommunications company is a natural partner "because we have the electronic-commerce technologies that large global companies wanted but we needed the network and global implementation base."

Syntegra is acquiring Control Data's technology, employees and customer base, Ousley said, adding that there will be no layoffs or major restructuring as a result of the merger. However, Control Data is expected to have a new name and branding strategy in place by the end of this year, he added.

Control Data Systems had revenues of $180 million last year and employs 1,100 employees in the U.S., Asia and Europe, with 75 percent of them located in the U.S., while Syntegra had $652 million in revenues and employs more than 4,000 worldwide, according to a BT statement.

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