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MCI to Acquire SHL Systemhouse for $1 Billion

September 20, 1995 GMT

WASHINGTON (AP) _ MCI Communications Corp. has agreed to acquire SHL Systemhouse Inc., a Canadian-based provider of information technology services, for $1 billion, the companies said today.

The deal has been approved by the boards of both companies and is pending regulatory approval in the United States and Canada.

MCI said the acquisition will make the company more competitive in meeting a growing demand by business and government for consulting, design and management of network and computer systems.

``The MCI-SHL Systemhouse combination plays to both the strengths of each company and the underlying market trends,″ said Gerald H. Taylor, president and chief operating officer for MCI.

The demand for single-source communications management services is increasing as businesses and government offices move from centralized mainframe computer systems to desktop PC-based networks, the companies said.

``Combining these companies into one provides the technical and business expertise as well as size and scale to exploit this opportunity,″ Taylor said.

MCI said that acquiring SHL was ``the logical next step in the company’s strategy to provide business customers with a fully integrated suite of communications and information advantages.″

The company last month introduced networkMCI Solutions, which paired hardware, software and consulting services with its traditional telecommunications services.

SHL, based in Ottawa, Canada, had 1994 revenue of $1.2 billion (Canadian). SHL will operate as a stand alone company. MCI’s existing professional services organization will be rolled into it.

MCI, based in Washington, D.C., is a diversified communications companies, with annual revenue of more than $13 billion.