British computer services firm Logica has announced a £510m takeover of Anglo-Dutch rival CMG to create Europe's third largest IT services company.
Logica, which employs around 500 people in Dublin and Cork, said it would own 60% of the renamed LogicaCMG and that its chief executive, Martin Read, would be chief executive of the enlarged group.
About 1,400 jobs, or 6% of the enlarged group, will be lost because of the takeover, but a Logica spokesman said no decision had been made on where the cuts would take place. The deal's terms had been well flagged with talks between the two announced a month ago.
Logica said it expected annual savings of £60m by the end of 2004, at a one-off cost of £80m.
