EDS to take over Alcatel’s IT services unit Answare

Electronic Data Systems Corp. (EDS) is due to take over Answare SA, the IT services subsidiary of French telecommunication equipment manufacturer Alcatel SA, the companies said Friday.

Under the terms of the deal, EDS will also supply IT services to Alcatel.

Answare will be controlled by EDS France, and will continue to offer systems integration and other services to French companies, including a number of Alcatel’s subsidiaries.

The move will help EDS grow its revenue and market share in Europe, and will give Answare access to new customers, EDS said in a statement.

Alcatel said the disposal of Answare was in line with its decision to focus on the telecommunication market.

Financial details of the deal were not disclosed and must still be approved by employee representatives. The companies expect to complete the transaction early in 2002.

Alcatel, in Paris, can be reached at http://www.alcatel.com/. EDS, in Plano, Tex., can be reached at http://www.eds.com/.