CIMdata PLM Industry Summary Online Archive

21 December 2005


T-Systems Acquires VW Subsidiary gedas

T-Systems is buying gedas AG from Volkswagen AG (VW). Both parties have agreed not to disclose the purchase price. With its 5,500 employees - two-thirds of whom are located outside Germany - gedas strengthens T-Systems' existing expertise in the automobile and manufacturing industries. Through the acquisition of gedas, the business customer division of Deutsche Telekom also gains the VW Group as a major corporate customer: The automaker signed a frame contract with the Deutsche Telekom subsidiary and gedas covering current IT services with the value of 2.5 billion euro over a term of seven years. The purchase is still subject to approval by the antitrust authorities.

With the acquisition of the VW subsidiary, T-Systems strengthens its core business as a service provider of information and communications technology (ICT) for the automobile and logistics sectors. Both companies' solutions and services complement each other. "With the acquisition of gedas we confirm our international focus on designated growth markets, such as Spain, France and Great Britain. We also strengthen our presence in important automobile markets in North America and Latin America as well as Asia," emphasized Lothar Pauly, member of the Deutsche Telekom Board of Management and T-Systems Chief Executive Officer.

"The gedas acquisition and the frame contract with the VW Group are milestones on the path toward internationalization and are important elements of Deutsche Telekom's growth strategy," stated Pauly. "We are investing in our core business in order to increase the potential for profitable growth in the future and to prepare T-Systems for the competitive challenges ahead of us."

Klaus Hardy Mühleck, Executive Vice President and Chief Information Officer, Volkswagen AG, emphasized: "After carefully examining numerous options for the future strategy of gedas, we have found a strong and reliable partner in T-Systems."

In 2004, gedas posted revenues of approximately 567 million euro - of which roughly two-thirds were outside of Germany. "With the gedas acquisition T-Systems gains additional core expertise in the automobile and logistics industries," explained Pauly.

gedas, previously a subsidiary of Volkswagen, has been active in the IT market for more than 20 years. The IT service provider advises companies along the entire value-add chain in the automobile and manufacturing industries. The company develops, integrates and operates complete IT solutions for its customers. It applies the technology and business process expertise gained in its core market for the benefit of customers from numerous other industries.

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