(Associated Press via NewsEdge) Royal KPN said it will launch a management-backed 766 million euros ($1.05 billion) bid for IT services company Getronics.
The Dutch telecommunications company also reported that second-quarter profit fell 7%.
The surprise acquisition came after Getronics recently said that discussions it was having about possibly being bought by a US company had fallen apart.
KPN CEO Ad Scheepbouwer said the companies have collaborated on major projects in the Netherlands 'for many, many years.'
'The rationale is that today customers increasingly require communications and IT services from a single end-to-end vendor,' Scheepbouwer said at a news conference after the deal was announced.
'By combining these two companies we will instantly become market leader in workspace management in the Netherlands,' he said.
Getronics works with organizations on what information and communications technology could improve their operations and helps them install and manage it. Its customers are concentrated in the manufacturing and financial industries as well as governments, with the US military an important client.
Scheepbouwer said Getronics would help KPN 'move up the value chain' in the corporate market.
KPN also said it would be able to make good use of more than 100 million euros ($140 million) in tax writeoffs Getronics has due to previous losses.
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