CSC has beaten rival EDS to successfully acquire BHP's spin-off services company BHP Information Technology (BHP IT) in a deal worth more than $700 million.
The deal, which includes a $75 million up-front cash component, also comprises an IT outsourcing contract for the services giant and the sale of BHP's Indonesian-based information technology business.
In the outsourcing contract, CSC will provide integrated IT services, including consulting and systems integration, to BHP for an initial seven-year term for over $700 million. The contract is expected to generate a 20 per cent reduction in services costs normally provided within BHP, the mining company said.
Under the deal, which is effective from June 1, BHP IT's 1700 staff will be transferred to CSC, bringing CSC's Australian staff count to 5700.
"Our agreement with BHP is a major milestone for CSC in Australia," CSC chairman, president and CEO Van B Honeycutt said. "Our relationship with BHP provides us with an entry into the robust industrial market in Australia and is a foundation for future expansion."
BHP managing director and CEO Paul Anderson said that in addition to providing key services support to BHP, CSC would work closely with BHP as it moves into the internet world.
"We are committed to ensuring our organisation is fully 'e-enabled' within the next two years and we will work in partnership with CSC to facilitate that transformation. The evaluation process has ensured a common understanding of our business goals and we look forward to our ongoing alliance with CSC," Anderson said.