Schlumberger to sell federal unit
- By Michael Hardy
- Sep 22, 2003
Schlumberger Ltd., a diverse technology company that largely markets to the petroleum industry, has agreed to sell the core information technology services activities of its SchlumbergerSema business, including its four-person federal government subsidiary, to Atos Origin, based in Paris.
As a result of the expected sale, Schlumberger Government Solutions Inc. will gain some new skills and probably grow in size, said Sara DeCarlo, the company's chief executive officer. Schlumberger is especially known among federal agencies as a supplier of smart card technologies.
"Atos has a very small presence, about $128 million [in revenues] in the U.S., and they do not have any business in the government at all," DeCarlo said.
But Atos will expand the Schlumberger subsidiary's reach, she said. "They have additional data centers," she said. "They have a Sun helpdesk. They have an SAP practice. We have a strong Oracle practice, so this will be adding to our offerings."
Atos's business mix is about 50 percent managed services, 40 percent systems integration and 10 percent consulting, she said. "That aligns beautifully with the Schlumberger approach."
The total value of the cash and stock deal is almost $1.29 million Euro, or about $1.5 billion at current exchange rates. The companies expect the acquisition to close in January.