Siemens BBC deal to have local benefits

Johannesburg, 20 Jan 2005

Siemens Business Services (SBS) expects its acquisition of BBC Technology to benefit the local market. The company says the addition to its multimedia expertise will give it the platform to expand its media business locally.

The end of last year saw the Siemens subsidiary conclude the 2.7 billion euro deal, which included a 10.5-year contract to deliver technology services to BBC on a global basis.

As part of the deal, Siemens has acquired BBC Technology, a commercial subsidiary of the BBC corporation, and has renamed it as Siemens Media. It will transfer about 1 400 BBC Technology employees into Siemens.

BBC expects to save about 45 million euros per annum over the life of the contract. Siemens will run and maintain BBC's IT infrastructure, including networks, servers, desktops, telephones, broadcast system and the Internet site, while at the same time providing IT consulting.

Dr Thabo Lehlokoe, market development director at SBS, says this deal will go "a long way" in terms of giving local Siemens personnel access to the newly acquired skills, competencies and technologies of BBC Technology.

He adds that the company will explore similar opportunities in the media sector, providing products, solutions and consulting services. "The acquisition will now heighten the chances of SBS increasing its market share in the local multimedia sector."

Georg Gebauer, operation related services regional manager, says the deal will be mutually beneficial for BBC and Siemens because it allows the broadcaster to concentrate on its core competencies.

Lehlokoe explains that the deal falls comfortably into SBS's business verticals because the company also owns Siemens BFE, one of the largest providers of broadcast and media systems integration services.

Gebauer adds that Siemens will also benefit from the fact that BBC Technology not only operates in Britain, but also has clientele in other parts of Europe and North America.