Enterprise, Mergers and Acquisitions, Content

IBM Acquiring T-Systems Mainframe Services From Deutsche Telekom?


IBM is acquiring T-Systems' mainframe services business from Deutsche Telekom for roughly $986 million, according to the Handelsblatt and IT-Zoom.

Roughly 400 T-Systems employees across six countries will transition to IBM in May 2019 as part of the deal, according to the reports. The mainframe unit is only one small piece of the larger T-Systems -- a German global IT services and consulting company headquartered in Frankfurt. Founded in 2000, T-Systems is a subsidiary of Deutsche Telekom.

Neither IBM nor T-Systems have publicly confirmed the mainframe unit deal price, but T-Systems seemed to confirm that some sort of deal or deeper relationship with IBM will surface in May, according to Reuters.

IBM, T-Systems: Two Companies In Transition

The apparent deal comes at a key time for all parties.

IBM is taking multiple steps to improve profit margins while striving to accelerate revenue growth. For instance, the company is:

T-Systems CEO Adel Al-Saleh has announced plans to shed thousands of jobs while targeting a return to profitability within three years.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.