Atos unveils £720m Siemens IT arm deal

Atos Origin is buying Siemens' IT division for €850 million (£720m) in a move that is expected to create "a European IT champion".

Under the terms of the deal, which was announced late on Tuesday night, Siemens will take a 15 per cent stake in Atos for at least five years and has awarded the new firm a seven-year IT outsourcing contract worth about €5.5 billion.

The combined company will have 2010 revenues of about €8.7bn and 78,500 employees worldwide, although about 1,750 Siemens posts are expected to be made redundant.

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German conglomerate Siemens is part of the consortium building the Edinburgh tram network, while French firm Atos has a strong presence in Scotland, having won IT outsourcing contracts with Scottish Enterprise and Skills Development Scotland.