Outsourcer LogicaCMG has sold off its telecoms products division for £265m in a move aimed at focusing the company more on its core IT and business services work.
The telecoms business, which provides converged mobile messaging and payments products to telecoms operators worldwide, has been bought by an investment consortium led by Atlantic Bridge Ventures. The division’s management team and 1,700-strong staff, based in 22 countries, are expected to transfer with the business.
Logica said it would continue to provide a full IT and business services offering to its telecoms clients worldwide, including consultancy, design, systems integration, applications management, testing and outsourcing.
Chief executive Martin Read said: “Over the last two years, we have significantly improved the profitability of the telecoms products business and developed a new product range. We have now secured an attractive sale price for the strengthened business.
“This divestment allows LogicaCMG to focus on its core strengths in IT and business services, using its industry and domain expertise and its strong business and technology insight to enable its customers to become more productive.”
Earlier this week, Logica secured an £11.5m contract to provide and manage a new web platform for the foreign office.