Atos Origin to Buy Siemens IT Solutions and Services

Date: January 22, 2011
Pages: 24
Price:
US$ 1,895.00
Publisher: Ovum
Report type: Brief Review
Delivery: E-mail Delivery (PDF)
ID: A75FBEF32E1EN
Leaflet:

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Atos Origin to Buy Siemens IT Solutions and Services
Introduction

SIS has long been the problem child of Siemens AG. Its acquisition by Atos Origin releases it from that unhappy home. The prosperity of the new entity rests on Atos Origin's management to create a world-class Europe-based IT service company. European strength must become the basis from which Atos Origin further transforms a tentative European champion into a global contender.

Features and benefits
  • Understand the implications for IT service clients with the purchase of SIS by Atos Origin
  • Learn about the shape that this new IT services entity will take
  • Develop a sense for how this move will impact the IT service sector in Europe and beyond
Highlights

This is a positive European deal that should enhance competitiveness in core European markets.Stakeholders need to keep a close eye on how the integration program unfolds, and should develop a contingency plan for any associated instability and potential departures of key personnel.Clients should demand proof of ongoing investment in new or improved offerings that secure the delivery strengths of Atos Origin and SIS.

Your key questions answered
  • What are the implications for the European IT service space with the acquisition of SIS by Atos Origin?
  • What should existing and prospective clients of IT services be aware of with this move?
  • How can IT service clients take advantage of the new entity's enhanced intellectual mindset?
SUMMARY

Catalyst
Ovum view
Key messages

MARKET PRESENCE AND RESOURCES

Acquiring SIS is an opportunity to establish a European leader in the global IT service market
  Atos Origin intends to acquire most of the existing SIS business unit
  The combined entity has a top-three position in major European markets

INTEGRATION CHALLENGES

A number of factors indicate the complexity of the integration that lies ahead
  The purchase price is low compared with other deals in this sector
  The purchase price and indemnifications suggest problems ahead
  Operational savings of €225m and zero net debt are assumed

MEASURING PROGRESS

A bigger, better IT service provider
  Enhanced stability
  Cost competitiveness
  Ability to attract skills
  Industry-specific offerings
  Improved geographic reach

RECOMMENDATIONS

Anticipate and prepare
  Impact on customer satisfaction
  Ability to deliver on new promises
  Reaction of competitors

APPENDIX

Further reading
Authors
Ovum Consulting
Disclaimer
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