Frank Pollare
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Marketing and Communications
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Bill Lackey
Director, Investor Relations
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News Release-- May 23, 2000
CSC ACQUIRES IT SUBSIDIARY OF THE BROKEN HILL PROPRIETARY COMPANY, SIGNS $470 MILLION OUTSOURCING CONTRACT
EL SEGUNDO, Calif., May 23 -- Computer Sciences Corporation (NYSE: CSC) has entered into an agreement with The Broken Hill Proprietary Company Limited (BHP) to acquire the assets of BHP Information Technology Proprietary Ltd. (BHP IT), a wholly owned subsidiary of the Australia-based firm.
As part of the agreement, CSC will provide a full range of information technology (IT) services, including consulting, systems integration and outsourcing, to BHP under a seven-year contract valued at US$470 million (A$820 million).
CSC’s agreement to acquire BHP IT, which has revenues of US$153 million (A$268 million), approximately one third of which is external to the BHP group and two thirds from the contract referenced above, includes the transfer of 1,700 employees and contractors, assets and services. BHP IT provides a full range of IT services to the commercial and industrial markets in Australia and to BHP.
BHP is a global natural resources company, with business interests in minerals, petroleum, steel plus support services. It has interests and operations in minerals exploration, production and processing, oil and gas exploration and development, and steel production and merchandising. Headquartered in Melbourne, BHP’s global asset portfolio is complemented by the efforts of its 50,000 employees. The sale of BHP IT completes the company’s restructuring of its Services division.
This strategic alliance will deliver access to leading IT capability worldwide, critical for BHP as the company utilizes innovation and technology to aggressively deliver additional value and increased competitiveness.
“Our agreement with BHP is a major milestone for CSC in Australia,” said Van B. Honeycutt, CSC’s chairman, president and CEO. “Our relationship with BHP provides us entry into the robust industrial market in Australia and is a foundation for future expansion.
“With the addition of the BHP IT employees, CSC is now one of the most formidable IT services providers in Australia with 5,700 employees,” he noted.
“The acquisition of the BHP IT employees is a ‘win-win’,” said George Bell, managing director of CSC’s Australian operation. “The new employees help strengthen our abilities to provide services that achieve results for our clients. And, by joining CSC, these professionals now have unmatched opportunities for career development with one of the world’s premier IT leaders.”
Bell said the employee transition would happen quickly. “We will move forward expeditiously to combine our operations and resources while continuing to provide outstanding service to all of our clients,” he said.
Computer Sciences Corporation helps clients in industry and government use information technology to achieve strategic and operational objectives. With 58,000 employees in more than 700 offices worldwide, the company tailors solutions from a broad suite of integrated service and technology offerings, including e-business strategies and technologies; management and IT consulting; systems development and integration; application software; and IT and business process outsourcing.
Since its formation in 1959, CSC has been known for its flexibility in its relationships with clients. Through numerous agreements with hardware and software technology firms, the company is able to identify and manage solutions specifically tailored to each client’s needs. CSC had revenues of $9.4 billion for the fiscal year ended March 31, 2000. Its headquarters are in El Segundo, California. For more information, visit the company’s web site at www.csc.com.
