Logica swoops for CMG in £510m deal

NEWS UK IT services firm Logica has bought Anglo-Dutch rival CMG for £510m. The combined firm, which will be known as LogicaCMG, will be the third largest IT services company in Europe, making it a major player in the two companies' respective fields. Both firms specialised in providing payment system technologies as well as enabling wireless communications with software for sending SMS messages on mobile phones. Logica will own 60 per cent of the combined firm and its CEO Martin Read will sit at the helm of the company. However, not all staff will keep their jobs. The merger will see around 1,400 staff, or six per cent of the combined workforce, shown the door. It is expected that the deal, which should be completed by the end of the year, will save the combined company around £60m per year.