BT and MCI SI businesses MCI Systemhouse and Syntegra will be merged by the comms firms, giving the SI business huge clout with vendors and threatening other Vars.
A joint BT and MCI statement said: 'The combination of BT and MCI will create, through the merger of Syntegra and MCI Systemhouse (formerly SHL), a global systems integration business of appropriate scale and geographic spread with the ability to meet customers' needs across a range of applications.
It will become the partner of choice for specialist consulting and computer firms.'
The company expects to save u500 million per year by its fifth year from several sources, including global volume purchasing opportunities, if the merger goes through.
BT CEO Peter Bonfield said the merger will create a combined firm called Concert with turnover of u25 billion. It will offer greater attractions to Far Eastern partners, especially NTT. BT and MCI will be retained only as brand names in their respective home countries.
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