IBM Inks $1.3B Deal to Build and Manage Dexia's IT
IBM announced it has signed a $1.3 billion agreement with Dexia to build and run the company's IT infrastructure.IBM has signed a $1.3 billion deal with Dexia Group to build and manage the European financial services company’s IT infrastructure. The long-term agreement is with Dexia and several major financial institutions in Europe to build and manage their IT infrastructure previously managed by Associated Dexia Technology Services (ADTS). And as a result of this agreement, IBM takes a controlling share in ADTS establishing an IBM company, renamed as Innovative Solutions for Finance (ISFF), with signed sourcing contracts at a total value of $1.3 billion over seven years. With this agreement, IBM will implement a cloud infrastructure to expand ISFF services into new markets and optimize the efficiency of its existing information technology management. Associated Dexia Technology Services was founded in 2006 to deliver IT services to financial institutions formerly within the Dexia Group, such as Belfius Bank, Belfius Insurance and Banque Internationale à Luxembourg. "Since 2006 Dexia has shouldered and encouraged the development of ADTS providing quality service for various entities formerly within the group," said Karel De Boeck, CEO of Dexia Group, in a statement. "After a long and careful selection process, Dexia has chosen a strong partner endorsing a new industrial future for the company and its employees. At the same time, this agreement is yet another significant step forward in the Group’s orderly resolution."
The agreement enables Dexia and the ISFF clients formerly within the Dexia Group to segregate themselves as customers and pursue their own business and IT investment strategies. IBM will leverage its market and technological expertise, as well as research capabilities to transform the IT infrastructure of these institutions, the company said.