Sema beats rivals to BRBS deal

The private sector will swallow one of the last chunks of the publicly owned UK rail industry when British Rail Business Systems (BRBS) is sold to Sema Group next month.

European IT services group Sema was selected as preferred bidder for BRBS last Friday, knocking out rivals Cap Gemini and ICL.

Over the next two weeks the British Railways Board, which owns BRBS, will iron out the final contract details, including the selling price.

BRBS, which is the main IT services supplier to the UK rail industry, was be valued at about #50m. But it is rumoured that Sema will pay less than this because of BRBS' year 2000 liabilities.

Computing highlighted the potential damage that the millennium time bomb could wreak on BRBS last year when it revealed that Andersen Consulting had aborted its bid.

Close Brothers, which is handling the sale, refused to say how much the year 2000 had affected BRBS' value. A spokesman for Close Brothers said: 'As part of the due diligence process, the bidders took on board millennium liability. The year 2000 is both a risk and an opportunity for Sema Group.'

Over the next few years, Sema Group will be under pressure to support BRBS customers. Philip Collings, IT director of Railtrack, which is BRBS' largest customer, said: 'The key is how quickly Sema can step up to our needs for year 2000.'