Fujitsu to buy German IT firm TDS AG for $131 mn

Tokyo, Dec 12: Japan's Fujitsu Ltd. said on Tuesday it would buy U.S. private equity firm General Atlantic's stake in German system developer TDS Informationstechnologie AG for an estimated 100 million euro (1.4 million) in a bid to raise sales abroad.

The acquisition would help the Japanese electronics group raise sales at its British unit Fujitsu Services Ltd. by up to 45 percent to 800 billion yen (.85 billion) in three years, Fujitsu said.

Fujitsu Services would acquire a 79.1 percent stake in TDS AG.

It then plans to conduct a tender offer for the remaining 20.9 percent stake.

If the company purchases all shares at the 2.80 euro price it is paying General Atlantic, then the entire company would be priced at 100 million euro.

TDS provides IT outsourcing and systems services and posted sales of 93 million euros in 2005, while Fujitsu Services had revenues of 3.3 billion euros in the year ended March.

REUTERS