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T-Systems to sell mainframe unit to IBM in $986-million deal: Report

The move is the latest by American turnaround specialist Adel Al-Saleh, who took over at T-Systems a year ago

Reuters  |  BERLIN 

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Deutsche Telekom's struggling IT services and consulting is selling its mainframe service to U.S. firm IBM, a newspaper reported on Sunday.

daily cited an internal memo which said 400 employees in six countries would switch to in May.

Tech site IT-Zoom reported that will pay 860 million euros ($986.16 million)for the business, although will not completely exit the mainframe but in future with

A for declined to comment on the price but confirmed that the firm was deepening its cooperation with IBM in and would operate together from May.

"Existing customer contracts remain unaffected. T-Systems will continue to offer mainframe services, but with IBM in the future," T-Systems said in a statement, noting the agreement was still subject to approval by anti-trust authorities.

IBM was not immediately available to comment.

The move is the latest by American Adel Al-Saleh, who took over at T-Systems a year ago, after was forced to book a big impairment charge against goodwill for the loss-making business.

Al-Saleh announced plans last June to cut 10,000 jobs in a three-year drive to return to profitability.

 

First Published: Sun, January 13 2019. 23:22 IST
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