Dell, the world’s biggest maker of personal computers, said yesterday it had won a €525m contract to supply computers and services for Royal Philips Electronics in 60 countries.

Philips, the Dutch electrical goods and electronics group has reported a net profit of €124m in the third quarter, compared with a loss of €330m a year earlier. This turnaround was far better than market expectations.

UK companies Logica and CMG are in talks to merge into what would be Europe's third largest computer services company, behind Cap Gemini, Ernst & Young and Atos Origin.