IBM eyes Equitant in outsource move

COMPUTER colossus, IBM, is to acquire a significant presence in the Irish outsourcing market.

It announced yesterday it will buy Equitant the Irish outsourcing company in

finance and administration, subject to regulatory approval. Founded in 1987 by Paul French and Ivor Dean the deal is about to make the two individuals quite wealthy, it is understood.

Big Blue is to buy Equitant for an undisclosed sum, it said. About 200 jobs are involved of which 166 are Dublin-based with the rest in Detroit in the US. IBM is one of the top players in this developing end of the services sector employing 3,500, said Don Schulman, one of the group’s key executives.

Mr Schulman was in Ireland yesterday to seal the deal with the Irish group. Equitant’s client list is small by comparison but last year it carried out €44 billion worth of transactions on behalf of customers.

Its software which is the major driver in this type of operation is understood to be first class. Mr Schulman said this is what IBM was after as much as the client base.

People are ‘key’ in the industry he said’ and Equitant had an impressive line up of personnel, he said. The company is currently majority owned by private investment firm Accretive Technology Partners.

Don Schulman said his company was delighted to be getting a company of Equitant’s calibre onto its books. Clients include Lucent Technologies and Microsoft which is evidence of its international standing.

IBM, which has made a series of acquisitions over the last year as it builds up the IT services it offers to corporate clients, said the deal was subject to regulatory approval.

Last year, the Competition Authority blocked IBM’s proposed purchase of Schlumberger Business Services, because it would have left companies with lack of choice in the business recovery services.

The acquisition, which is subject to regulatory approval is expected to boost IBM’s capabilities in finance and administration transformation services.