Sema Group

Sema Group was an Anglo-French information-technology services company and consultancy business headquartered in Paris and registered in the United Kingdom. It was created in 1988 through the merger of the British CAP Group and the French company Sema-Metra SA. The merger brought together established capabilities in information systems, software, consulting, engineering, and technology services, creating a cross-border group with a significant presence in the United Kingdom and France. The company expanded through a mixture of organic development, joint ventures, and acquisitions. In 1991, Sema and British Aerospace formed BAeSEMA, a naval-systems joint venture intended to develop and produce systems for the maritime and defence sectors. Sema also strengthened its consulting operations during the early 1990s. In December 1991 it acquired the Cambridge-based consultancy Baddeley Associates and used the business as the foundation for Sema Group Consulting. During the 1990s, Sema broadened its industry and geographic coverage. In 1997 it acquired British Rail Business Systems for £27 million. The business had been sold by the United Kingdom Government during the privatisation of British Rail and gave Sema exposure to information systems serving the rail sector. Around the same period, Sema acquired Syntax in Italy, the former information-technology services division of Olivetti, adding an important Italian operation to the group. Sema's most consequential expansion was its 2000 acquisition of LHS, a company associated with telecommunications software and services in the United States. The transaction was intended to give Sema access to LHS's telecoms technology and US market position, but it was followed by financial difficulties and a profits warning. Contemporary commentary attributed part of the deterioration to the LHS acquisition, while Sema's stock-market valuation reportedly fell by 45 percent during the episode. The event became a major turning point in the company's history and weakened its independence. In 2001, Sema Group plc was acquired by Schlumberger and renamed SchlumbergerSema. The Sema Group brand therefore ceased to operate as an independent corporate group. In 2004, most of the former SchlumbergerSema business was sold to Atos Origin. Other activities followed separate paths: the messaging unit was combined with Taral Networks and spun off as Airwide Solutions, while the Smart Card and Terminal Department, formerly associated with Schlumberger Test & Transactions, became Axalto. Axalto later merged with Gemplus International to create Gemalto. Sema Group is consequently best understood as a historical IT-services and systems-integration brand rather than an active consumer-facing brand. Its legacy lies in the consolidation of British, French, Italian, and American technology-services operations and in the later redistribution of those activities among Schlumberger, Atos Origin, Airwide Solutions, and Gemalto.

Sema Group emerged in 1988 from the merger of the British CAP Group and the French Sema-Metra SA. The resulting company combined British and French technology-services capabilities and operated as an Anglo-French IT-services and consulting group. Although it was registered in the United Kingdom, its headquarters were in Paris. The group became publicly traded in London and was included in the FTSE 100 Index. Expansion during the early 1990s extended Sema's activities beyond general information-technology consulting. In 1991, the company formed BAeSEMA with British Aerospace to work on naval systems. The joint venture represented Sema's participation in defence and maritime technology, alongside its established software and consultancy work. That same year, Sema acquired Baddeley Associates, a Cambridge consultancy, and developed the acquired business into Sema Group Consulting. Sema continued to build a broader European services platform during the 1990s. In 1997 it bought British Rail Business Systems for £27 million. The acquired operation had been separated from British Rail and sold by the UK Government in the context of railway privatisation. The transaction gave Sema a position in transport information systems. Sema also acquired Syntax in Italy, previously the IT-services division of Olivetti, thereby adding scale in the Italian market. The company pursued a more ambitious international strategy around the end of the decade. In 2000 it acquired LHS, seeking to gain access to US telecommunications software and services. The acquisition increased Sema's exposure to the telecoms sector but was followed by operational and financial pressure. Analysts linked the LHS transaction to a profits warning, and Sema's market valuation reportedly declined by 45 percent. This episode undermined confidence in the group's acquisition strategy and contributed to the end of its independence. The BAeSEMA joint venture also came to an end in November 1998. British Aerospace bought Sema's 50 percent interest for £77 million, leaving the defence joint venture under British Aerospace's control. In 2001, Schlumberger acquired Sema Group plc and renamed it SchlumbergerSema. The acquisition ended Sema Group as a standalone listed company and placed its technology-services operations within a larger multinational group. The former Sema activities were subsequently reorganised. In 2004, most of SchlumbergerSema was sold to Atos Origin. The messaging unit was merged with Taral Networks and spun off as Airwide Solutions. The Smart Card and Terminal Department, formerly part of Schlumberger Test & Transactions, became Axalto; Axalto later merged with Gemplus International to form Gemalto. Sema Group therefore survives primarily as a historical corporate predecessor within later technology-services and digital-security businesses rather than as an active independent brand.

• 2004

  Bulk of SchlumbergerSema sold to Atos Origin

  [1]Sema Groupen.wikipedia.org

  Most of the former Sema Group business was transferred to Atos Origin.

• 2001

  Acquired by Schlumberger

  [1]Sema Groupen.wikipedia.org

  Schlumberger acquired Sema Group plc and renamed it SchlumbergerSema.

• 2000

  LHS acquisition

  [1]Sema Groupen.wikipedia.org

  Sema acquired LHS to enter or strengthen its position in US telecommunications software and services.

• 1998

  BAeSEMA dissolved

  [1]Sema Groupen.wikipedia.org

  British Aerospace purchased Sema's 50 percent share of BAeSEMA for £77 million, ending the joint venture.

• 1997

  British Rail Business Systems acquired

  [1]Sema Groupen.wikipedia.org

  Sema bought British Rail Business Systems for £27 million.

• 1997

  Syntax acquired in Italy

  [1]Sema Groupen.wikipedia.org

  Sema acquired Syntax, formerly Olivetti's IT-services division, expanding its Italian presence.

• 1991

  BAeSEMA naval-systems joint venture established

  [1]Sema Groupen.wikipedia.org

  Sema and British Aerospace formed BAeSEMA to produce naval systems.

• 1991

  Sema Group Consulting created

  [1]Sema Groupen.wikipedia.org

  Following its acquisition of Baddeley Associates, Sema created Sema Group Consulting.

• 1988

  Creation of Sema Group

  [1]Sema Groupen.wikipedia.org

  CAP Group of the United Kingdom and France's Sema-Metra SA merged to form the Anglo-French Sema Group.

A cross-border enterprise technology, consulting, and systems-integration group serving telecommunications, transport, defence, and other institutional markets.

• IT consulting · 1991

  Sema Group Consulting

  A consulting operation created from the Cambridge-based Baddeley Associates acquisition. It represented Sema's advisory and professional-services activity within the wider technology group.

• Naval systems · 1991

  BAeSEMA naval systems

  A naval-systems joint venture established by Sema and British Aerospace in 1991. The venture worked on naval-system production and ended in 1998 after British Aerospace acquired Sema's interest.

• Transport information systems · 1997

  British Rail Business Systems

  An information-systems business acquired from the UK Government in 1997 following the privatisation of British Rail. It expanded Sema's activity in railway and transport technology.

• Telecommunications software

  LHS telecommunications software and services

  The telecommunications software and services business acquired by Sema in 2000. The transaction was intended to provide access to the US telecoms market but was followed by a profits warning and substantial pressure on Sema's market valuation.

• 2001

  Sell or transfer the company through acquisition by SchlumbergerM&A

  Background

  Following the difficulties associated with its expansion and the LHS transaction, Sema Group was acquired by Schlumberger.

  Action taken

  Schlumberger acquired Sema Group plc and renamed it SchlumbergerSema.

  Aftermath

  Sema ceased to exist as an independent listed corporate group. Most of the resulting business was later sold to Atos Origin.

  Source

• 2000

  Acquire LHSM&A

  Background

  Sema aimed to expand into US telecommunications software and services through the purchase of LHS.

  Action taken

  Sema acquired LHS in a transaction reported at €5.1 billion.

  Aftermath

  Analysts associated the acquisition with a subsequent profits warning, and Sema's stock-market valuation reportedly fell by 45 percent. The financial pressure preceded the company's acquisition by Schlumberger in 2001.

  Acquisition price. €5.1 billion transaction (2000)

  Source

• 1997

  Acquire British Rail Business SystemsM&A

  Background

  British Rail Business Systems became available through the UK Government's privatisation of British Rail.

  Action taken

  Sema acquired the business for £27 million.

  Aftermath

  The purchase expanded Sema's transport and rail information-systems activities.

  Acquisition price. £27 million transaction (1997)

  Source

• 1991

  Acquire Baddeley Associates and establish Sema Group ConsultingM&A

  Background

  Sema sought to strengthen its consulting capabilities and acquired the Cambridge-based Baddeley Associates.

  Action taken

  The acquired consultancy was used to create Sema Group Consulting.

  Aftermath

  The transaction broadened Sema's professional-services base, although the later independent status of the consulting business is not specified in the source material.

  Source

• 2004

  Most of SchlumbergerSema sold to Atos Origin[1]Sema Groupen.wikipedia.org

  M&A

  The bulk of the former Sema Group operations, then operating as SchlumbergerSema, was sold to Atos Origin.

• 2001

  Schlumberger acquires Sema Group[1]Sema Groupen.wikipedia.org

  M&A

  Schlumberger acquired Sema Group plc and renamed the business SchlumbergerSema.

• 2000

  Sema acquires LHS[1]Sema Groupen.wikipedia.org

  M&A · Other

  Sema acquired LHS to expand its telecommunications software and services activities in the United States. The deal was later associated with a profits warning and a reported 45 percent decline in Sema's stock-market valuation.

• 1997

  Sema acquires British Rail Business Systems[1]Sema Groupen.wikipedia.org

  M&A

  Sema acquired British Rail Business Systems for £27 million after the business was sold by the UK Government during British Rail privatisation.

• 1997

  Sema acquires Syntax in Italy[1]Sema Groupen.wikipedia.org

  M&A

  Sema acquired Syntax, formerly Olivetti's IT-services division, strengthening its Italian operations.

• 1991

  Sema and British Aerospace establish BAeSEMA[1]Sema Groupen.wikipedia.org

  M&A · Other

  Sema and British Aerospace created a naval-systems joint venture. The venture was dissolved in 1998 when British Aerospace purchased Sema's 50 percent share.

• 1991

  Sema acquires Baddeley Associates[1]Sema Groupen.wikipedia.org

  M&A · Other

  Sema acquired the Cambridge-based consultancy Baddeley Associates and used it to create Sema Group Consulting.

• 1988

  Sema Group formed through the merger of CAP Group and Sema-Metra[1]Sema Groupen.wikipedia.org

  M&A · Other

  The British CAP Group and French Sema-Metra SA merged to create Sema Group, an Anglo-French IT-services company.

1. 1Sema Groupen.wikipedia.org