IT services consolidation continues

The international ICT world was dominated by further consolidation in the IT services field with LogicaCMG`s acquisition of WM-data and IBM`s fourth recent purchase.

Locally, the ICT market was extremely quiet with little news of major significance apart from Tata`s rumoured possible investment in government`s InfraCo.

* LogicaCMG bought Sweden`s largest IT services vendor, WM-data AB, for lb882 million. This deal potentially increases LogicaCMG`s annual revenue by about 40% to approximately $4.5 billion.
* IBM purchased Internet Security Systems for $1.3 billion in order to beef up its security capabilities. This is IBM`s fourth deal in the last few weeks and follows hard on the heels of its acquisitions of FileNet, MRO Software and Webify Solutions.

* Excellent interim figures from Control, with revenue up nearly 90% and profit more than double.
* Good interim numbers from Cell C, with revenue up nearly 23% and EBITDA up a similar amount.
* An interim loss from Idion, although revenue was up 11%.
* A negative trading update from Mustek.
* Square One acquired NETIntellect.
* A share issue by Cape Empowerment Trust.
* A rumoured 26% investment by Tata in InfraCo, a South African telecoms company that will offer long distance telephone services and operate marine telecom infrastructure.

Locally, [there was] little news of major significance apart from Tata`s rumoured possible investment in government`s InfraCo.

Paul Booth, MD, Global Research Partners

* The appointments of Jise Ferreira as MD of Namibia`s MTC, Emilienne Macauley as MD of Celtel Madagascar, and Saah Adulai Vandi as chairman of the Liberia Telecommunications Authority.
* Excellent results from Celsys with revenue up over 1 000% and well back in the black.
* Satisfactory interim numbers from Telecom Egypt.

* Australia gave the go-ahead for the full privatisation of Telstra.
* Cisco acquired Arroyo Video Solutions, a provider of next-generation solutions for on-demand TV and related consumer services.
* A planned IPO on Nasdaq by Netlist, a memory sub-system developer.
* The launch of a formal investigation by the UK`s Financial Services Authority into iSoft Group.

* The possible buy-out of Gateway by Lap Shun Hui, the founder owner of eMachines, a company that was sold to Gateway in 2004 for $262 million.
* A successful off-loading by Siemens of its IT services unit to Atos Origin.

* JSE All share index: Up 2.3%
* Nasdaq: Down 1.1%
* Top SA share movements: Datatec (+8.9%), I-Solutions (-12%), Integrear (-14.8%), ISA (-8.9%), Sekunjalo (-9%) and Zaptronix (-9.1%)
* Top international share movements: Applied Imaging (+22.9%), Eagle Broadband (+27.5%), Gateway (+36.6%), Mitek (+28.6%), Robocom Systems International (+25%), SEMX (+22.2%) and Telefonica of Argentina (+28.3%)

This Thursday sees the official launch of SNO Telecom`s services, so look out for media coverage and analysis of this announcement on Friday and the weekend.