LogicaCMG bids farewell to telecoms division in $518M deal

LogicaCMG said it will sell its telecoms products division to a consortium led by private equity firm Atlantic Bridge Ventures in a $518 million deal.
The move gives birth to a new company, Acision, that will continue to offer messaging, billing, content enablement and customer-relationship-management services to telecoms and media industries worldwide. The firm will employ 1,700 and “from day one will have revenues of a half billion U.S. (dollars),” according to LogicaCMG.
LogicaCMG said it plans to focus on expanding its IT services business, and will also use the cash to reduce debt and buy out minority shareholders in recently acquired companies.
“Recently the objectives of LogicaCMG’s consulting and integration business and those of telecoms products have become less aligned,” CEO Chris McDermott said. “This separation is a logical step for our business, enabling us to grow our channels and enhance our position as a trusted partner for network operators and service providers, while having the agility to continue to innovate and remain a global market leader.”