Automation giant Siemens AG announced on Tuesday that it will sell its IT Solutions and Services business to enterprise integration and IT services provider Atos Origin for €850 million.
Under the deal, Siemens gains a 15% stake in Atos Origin for at least five years, while the enterprise integration specialist gets a seven-year outsourcing contract, worth €5.5 billion, to operate Siemens’ IT infrastructure and manage its applications worldwide.
The deal, which is expected to close in June 2011 following shareholder and regulatory approvals, would create what the companies characterized as the largest European managed-services organization, delivering cloud computing expertise, enterprise integration services, and operations management systems integration.
Siemens also will support Atos Origin’s solution development strategy in the manufacturing, energy, transportation, and healthcare industries, with both companies contributing €50 million toward R&D, the companies said.