Deutsche Telekom's IT arm acquires S African IT major arivia.kom

Information technology major T-Systems SA, a subsidiary of Deutsche Telekom has completed the acquisition of South Africa's state-owned arivia.kom, outsmarting industry giants IBM, Siemens and Accenture.

Consequently, the company will get the five-year IT service contracts with T-Systems shareholders Eskom and Transnet, arivia.kom's biggest customers, the company said in a statement yesterday.

Mardia van der Walt-Korsten, T-Systems CEO said the contract with Eskom would earn the company at least 2 billion rand over its five-year term, with the Transnet deal worth ''probably half of that''.

The deal would give T-Systems ''the number one position in IT and telecommunications outsourcing in SA''.

''The arivia acquisition gives us a foothold in the public sector, which tends to be countercyclical customers - if there is a downturn in the private sector, hopefully these contracts will compensate,''  Walt-Korsten added.

T-Systems will also acquire other key arivia.kom accounts including Airports Company SA, the State Information Technology Agency and the Department of Water and Environmental Affairs.