Logica Offers $102 Million for USC's IT Arm

25 July 2000

Utility Services Corporation Limited (USC) today announced that it has received an offer of $102 million from Logica plc for the main operations of its information technology subsidiary, MITS. Logica is a major UK based global IT group with annual revenues in excess of $1.7 billion.

The offer includes the assets of MITS’ Systems Integration, Facilities Management, Real Time, Technology Support, Dataflow and e-commerce businesses. These operations account for unaudited F2000 revenue of approximately $65 million.

The offer, however, excludes E-mits, MITS’ USA joint venture (EPIC) and its IT consulting arm (Prospect Management Consulting). USC also retains ownership of the source code for MITS’ MOSAIC database and the right to develop it for markets which are outside of SCADA applications. Logica has a 60 day option to acquire these assets for a further $40 million.

All of USC’s Infrastructure and Business Services groups will remain, including the investment in the ILID shelf labeling system, U-tel (Vodafone channel manager), Neo Design Synergy (industrial, graphic and web design), the Malaysian telecommunication arm as well as NPI and Powerline Management Systems and Skilltech (meter reading maintenance and management operations).

A Memorandum of Understanding has been signed with Logica and the transaction is subject to due diligence by both parties which will be conducted over the next weeks. USC in particular will be taking tax advice to confirm the net benefit for shareholders from the proposed offer.

Shareholder approval will be required and the directors will report to shareholders at a future point in time with their recommendation.

About USC and MITS

USC is a listed public company with market capitalisation of $80 million, sales revenues in excess of $100 million and staff of 700. MITS, a unit of USC, is a leading provider of information technology products and services to utilities including systems integration, facilities management, e-commerce, and technology support.

Further information:
Geoff Lord
Executive Chairman
Utility Services Corporation Limited
Tel: (03) 9941 3100