Siemens in €2.69bn deal with BBC

German industrial giant Siemens has signed a €2.69bn contract to deliver technology services around the world to the BBC, a deal that will see it acquire the broadcaster’s technology subsidiary.

The supply contract is valid for 10 1/2 years, Siemens said. The deal will see some 1,400 BBC Technology employees transferred to Siemens.

Siemens Business Services president Adrian von Hammerstein said the BBC unit already is firmly established in the British and US markets – “thus we are acquiring a strong platform in these two key markets of the media industry to grow our media business internationally.”

Siemens will run and maintain BBC’s information technology infrastructure including networks, servers, desktops, telephones, its broadcast system and internet site.

The BBC expects to save about £31m (€44m) annually over the life of the contract.

“At the heart of this agreement is the need to deliver cost savings and release the value of BBC Technology,” said John Varney, the BBC’s chief technology officer.

Founded in March 2001, BBC Technology provides products and services for the BBC, other broadcasters, platform owners, content owners and government organisations.

Customers include BBC News, BSkyB, DirecTV, ESPN Inc., Hutchison 3G, SABC and Scottish Enterprise.