Computer Sciences Corporation has entered into an agreement with Softlab Limited, a wholly owned subsidiary of BMW Group, to acquire the assets of Softlab’s UK Automotive OEM software, systems integration and services business. Terms of the acquisition were not disclosed.
The deal includes a one-year information technology (IT) services agreement, valued at approximately $26 million (18m pounds sterling) for 2001, under which CSC will provide applications management services to customers including BMW, Ford (Land Rover) and MG Rover. The contract includes provisions for future renewals.
The agreement builds upon an additional three-year IT outsourcing pact, valued at US$18 million (12.6 million pounds sterling), for the provision of data centre services in the UK for BMW, Ford (Land Rover) and MG Rover. Under this agreement, which became effective January 22, CSC manages mainframe and teradata services and associated data networks.
The divestiture of the automotive OEM business forms part of Softlab’s ongoing strategy to focus on its core businesses.