IT systems integrator Logica has completed the acquisition of MITS, the utilities-focused IT services arm of Utility Services Corporation (USC), to boost its consulting strategy for global utilities industries.
For Logica, which has built its core business around telcos, financial services and energy markets, the $85 million acquisition lends Logica more focused management expertise in integration services for utilities companies, according to to the company's supervisory MD Jim McKenna.
The acquisition would also propel Logica's worldwide expansion plans in the transport, heavy industry and energy sectors, he added. "We already have a strong presence in the Asia- Pacific region in Malaysia, Hong Kong and China," McKenna said. "But now, IT executives are seeing us as being under one umbrella of services. The technology business is looking at a strategic level for partnerships; ways to reduce their cost base and generate more revenue by offering more services to their customers."
Most of Logica's 550 global IT staff specialising in facilities management, systems integration and technology maintenance for utilities organisations, will not be redistributed under the acquisition. Only a "handful" will relocate to mainland China and Europe, regions with strong business opportunities, according to McKenna, due to gradual deregulation of telco and transport industries there.
McKenna was confident the Logica-MITS entity would prosper in the long term both here and abroad.
Logica's global revenue grew 28 per cent to $2.4 billion for the year ending June 30 2000. Its net profits grew 54 per cent to $240 million last financial year. MITS' operating revenue was $65 million in the same period.