U.S. energy services company Schlumberger Ltd. is
buying the British information technology services concern Sema PLC
for $5.2 billion.
The acquisition would help New York-based Schlumberger enlarge
its growing systems-integration business, particularly in the
development of smart cards, or wallet-sized devices embedded with
microchips.
Schlumberger chairman and chief executive Euan Baird said the
deal has the full support of Sema's management and the company's
two major shareholders, France Telecom which owns 16.9 percent and
BNP Paribas SA which owns 5.1 percent.
Pierre Bonelli, who will continue as Sema's chief executive
after the deal, said Schlumberger will provide Sema "with the
scale and stability to continue to prosper" while generating
significant new opportunities to develop the business.
Under the deal, Schlumberger is offering 560 pence ($8.09) in
cash for each Sema share, a premium of nearly 18 percent from
Friday's close in London.
By midday Monday, Sema shares were up 72.75 pence, or 15
percent, at 547.5 pence on the Stock Exchange in London.
Sema recently issued two profit warnings after its acquisition
of telecommunications company LHS Group.
"We are planning to keep the whole of Sema. I don't envisage
any substantial break-up," Baird told reporters in a conference
call.
Schlumberger, which earned $735 million in 2000, is the world's
No. 2 oil field services company. It is also involved in wireless
telecommunications and utilities.
Sema is Europe's second-largest technology services firm behind
Cap Gemini, conducting business with financial, telecommunications
and energy companies.
