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Deutsche Telekom prepares T-Systems sale - Manager Magazin

Deutsche Telekom prepares T-Systems sale - Manager Magazin
Deutsche Telekom prepares T-Systems sale - Manager Magazin   -   Copyright  Thomson Reuters 2021
By Reuters

BERLIN – Deutsche Telekom is preparing to sell its troubled IT services unit, T-Systems, Manager Magazin reported on Thursday, citing people familiar with the matter.

The company plans to start talks with interested parties in February, with a deal expected in September, the magazine added.

Deutsche Telekom was not immediately available for comment on the report.

While the telecoms business has been performing well, T-Systems has been underperfoming, with incoming orders declining by 25% during the coronavirus crisis.

Last year, Deutsche Telekom’s finance chief Christian Illek said that reduced IT spending by the automotive and airline industries would necessitate additional restructuring at T-Systems on top of an ongoing three-year turnaround plan.