M-real and IBM in 400m deal over Logisware

News by

18 June 2003

M-real has finalised negotiations with IBM Global Services and signed an agreement that will establish a partnership worth almost 400m (e550m) over 10 years.

The agreement is effective from 1 September and will include the transfer of M-reals IT services operation, Logisware, to IBM.

Around 300 personnel employed by M-real and Logisware will transfer to IBM. The deal should lead to a 35% cut in the Finnish paper manufacturers IT costs.

The pre-tax capital gain on the sale will amount to around 7m, and will be booked in M-reals third-quarter results.

Some Logisware staff will transfer to M-real and Metslitto.

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