IBM has agreed to buy a tech subsidiary from the Belgian financial firm Dexia, and has signed contracts with several major European financial institutions to manage their IT.
IBM has agreed to take a controlling stake in Associated Dexia Technology Services Company and will rename it Innovative Solutions for Finance, it said Friday. The company is a subsidiary of the Dexia Group, a Belgian banking and financial services company currently being broken up.
The terms of the acquisition were not disclosed.
IBM has also signed a deal to manage IT for several major European financial firms that were formerly clients of Associated Dexia Technology Services. The names of the new clients were not announced. The deal is worth $1.3 billion over seven years, IBM said.
In addition, IBM will create a cloud-based infrastructure for the newly acquired division, it said.
Associated Dexia Technology Services was founded in 2006 to provide IT services to financial institutions within the Dexia group of companies. Those companies will now handle their IT services independently, the release said.
Dexia was bought by the Belgian government, with additional capital provided by France and Luxembourg, in 2011, after the company suffered steep losses. It is now being broken up.
"After a long and careful selection process, Dexia has chosen a strong partner endorsing a new industrial future for the company and its employees," said Karel De Boeck, chief executive of the Dexia Group, in the news release. "At the same time, this agreement is yet another significant step forward in the Group's orderly resolution."