Information about Logicacmg

LogicaCMG
	Public (LSE:LOG, Euronext:LOG)
Founded	1969 (Logica), 1964 (CMG)
Headquarters	UK, Netherlands offices in 36 countries
Key people	Dr. Martin Read, Group Chief Executive Cor Stutterheim, Non-Executive Chairman Seamus Keating, Group Finance Director Jim McKenna, Chief Operating Officer
Industry	IT Services, Consulting
Products	Business consulting, IT and value-added business process outsourcing, systems integration, telecoms products and solutions
Revenue	£2.7 billion GBP (2006)
Employees	~40,000 (2006)
Website	www.logicacmg.com

LogicaCMG (LSE: LOG, Euronext: LOG) is a UK-based global IT and management consultancy company. It is quoted on the London Stock Exchange and Euronext Amsterdam, and is a member of the FTSE 250 index of shares. As of 2006, the company is active in 42 countries and has nearly 40,000 employees. In 2003, it realised a turnover of 1.7 billion GBP (3.1 billion US$ ; 2.6 billion EUR). The company plans to change its name back to "Logica" in 2008.

Overview and history

Logica was founded in 1969 by Len Taylor, Philip Hughes and Pat Coen. The company started life as a systems integration business at the same time as the birth of the mini computer. The majority of projects undertaken at that time exploited the flexibility and power of these machines. Important projects included the control systems for the natural gas grids in the UK and the Netherlands, the automated clearing system for the UK banks, the computerization of the new stock exchange in Hong Kong, and the customer service system for British Telecom, the control system for the Eutelsat satellite constellation as well as numerous projects for the European Space Agency including the software for the successful Huygens mission to Titan. Logica undertook significant product developments for IBM. Logica is credited with the development of the Teletext system for the BBC.

Logica set up operating subsidiaries in the Netherlands, Australia, Sweden, the United States and elsewhere as well as joint ventures in Hong Kong with Jardine Matheson and Italy with Finsiel and one with British Airways.

It now has over 40,000 employees operating in 41 countries across the globe. Total turnover of 14 billion euros and at present is number one in application management and holds 12th position among all companies in the world.

The company was the first software company to be floated on the London Stock Exchange on 26 October 1983. Company projects include the strategic partnership with the Crown Prosecution Service known as COMPASS, which has included the development of a Case Management System (CMS), and ERNIE - the system which randomly generates premium bond numbers.

It was announced on the 29^th May 2007 that after leading LogicaCMG for 14 years, CEO Martin Read has brought forward his retirement. This announcement has come following profit warning issued by the company. Andy Green will leave his role as CEO of British Telecom's group Strategy and Operations to replace Read from 1 January, 2008.^[1]

On September 24, 2007, Cor Stutterheim announced that LogicaCMG will change it's name into Logica, starting on March 2008. The reasoning being that 'Logica' would be a more international recognisable name than 'LogicaCMG'.^[2][3]

Mergers and divestments

The Company has made a number of acquisitions in the United States, Germany, Sweden, France and Australia. The acquisition of Irish company Aldiscon brought Logica into the text messaging business, which was to prove very lucrative.

In 2002 the Company merged with CMG. The merger of Logica (60%) with CMG / Admiral (40%), on December 30, 2002, represented the union of an established technology firm (Logica) with an established consulting firm (CMG).

In 2006, LogicaCMG purchased the French company Unilog and the Swedish WM-data.

On February 20th 2007, LogicaCMG Telecom Products was sold for £265m (US $525m), by private investors Atlantic Bridge Ventures and Access Industries and is now known as Acision. The company, based in Reading, UK, employs approximately 1,700 people in 22 countries across six continents. Acision continues as the world leader in independent mobile messaging software systems, including its IP SMSC for mobile operators and service providers.

Activities

LogicaCMG is a prominent IT consulting firm, but does not advertise widely and is shy of general public attention. As a consequence of this relative obscurity, the LogicaCMG marketing literature that does exist lists various 'wow factors' that people may be surprised by:

• LogicaCMG systems supports the missions of over 150 orbiting satellites.
• LogicaCMG solutions handle more than half the world's foreign exchange traffic.
• LogicaCMG systems process two out of every three text messages sent in the world.^[4]
• LogicaCMG has delivered one out of every four multi-media messaging centres installed by wireless service providers across the globe.^[5]
• LogicaCMG HR outsourcing services process more than $90 billion of salaries globally each year.^[6]

Significant recent events include:

• June 2003 LogicaCMG’s software controlled Beagle 2 probe after separation from the Mars Express orbiter.^{[7] [8]}
• Dec 2006 - Transport for London (TfL) terminate IT outsourcing contract with LogicaCMG after payment disputes and a failure to meet service level agreements.^{[9] [10] [11]}
• 20 Feb 2007 - LogicaCMG sells its telecoms products division ^{[12] [13]}

External links

• Official website

References