CA targets local service organisation

CA targets local service organisation

Computer Associates' (CA) raid on the local services industry has begun.

Allan Smith, CA's managing director, last week confirmed to ARN that the company has made an offer to a leading Australian services organisation.

"Our legal people in the US are talking to a particular services-oriented organisation locally," Smith said.

He refused to name the company involved, but did admit that three of the candidates raised by industry analysts as potential targets - namely Aspect Computing, Computer Power Group (CPG) and Data#3 - were on CA's original short list of six companies (ARN July 8, page 12).

Smith also told ARN the targeted company is ranked among the top 10 service providers in Australia. Perennial takeover suspect BHP IT has also been touted. But while CA is looking to acquire its target company outright, an equity partnership is also an option, according to Smith.

At press time, he was unable to verify the exact status of negotiations, but said the deal could be closed by as soon as the end of the month.

At the latest, arrangements are to be finalised by the end of CA's third quarter, in December.

"That will then give us time to familiarise ourselves with their business before the end of Q4 so we can start afresh next year," Smith said.

Executives from Aspect, CPG, Data#3 and BHP did not respond to ARN's calls prior to press time.

STOP PRESS: US-based company, Interim Services, announced on Friday its intention to make a $205 million bid for Computer Power Group.

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