IT services company Pink Roccade NV has signed a letter of intent to acquire a data center and processing operation from local rival Ordina NV in the hope of winning over Ordina’s biggest client, Dutch social security administrator UWV, when it re-tenders for outsourcing business in 2006.
Ordina chief finance officer, Hans Den Hartog, told ComputerWire that Ordina does not have the scale in outsourced data processing services to continue to service UWV profitably when the client re-tenders its outsourcing contracts in 2006. However, Ordina will continue to provide systems integration, application development, and systems renewal services to UWV.
PinkRoccade is expected to take on 40 of the 60 employees in the UWV operation, with the remaining 20 to be retained by Ordina. A price on the deal has not yet been decided and will depend on the value of business going through the operation from UWV in the run-up to the client’s new contract award on January 1, 2006. Ordina originally acquired the operations in 2000 as part of a full outsourcing deal with UWV. In 2003 it lost the contract to provide desktop services to the client.