IBM takes control of $1.3 billion ADTS business
09 December 2013 | 3322 views | 0
IBM has taken a controlling stake in Associated Dexia Technology Services, which provides IT services to financial institutions formerly within the Dexia Group, including Belfius Bank, Belfius Insurance and Banque Internationale à Luxembourg.
ADTS currently runs a portfolio of signed sourcing contracts at a total value of $1.3 billion over seven years.
IBM says it will rename ADTS as Innovative Solutions for Finance (ISFF), and implement a cloud-based infrastructure to push the business into new markets.
Luxembourg-based Dexia - severely impacted by the credit crunch and subsequent sovereign debt crises - has been selling off assets and breaking up the business under a resolution programme agreed with the European Commission in 2012.
Karel De Boeck, CEO of the Dexia Group says the agreement will enables Dexia and the ISFF clients formerly within the Group to segregate themselves as customers and pursue their own business and IT investment strategies.
"After a long and careful selection process, Dexia has chosen a strong partner endorsing a new industrial future for the company and its employees," he says. "At the same time, this agreement is yet another significant step forward in the Group's orderly resolution."