Logica to form joint venture with Finland's Tapiola

Technology service group Logica has signed a letter of intent with Finnish insurance company Tapiola Group, to form a new company to provide information and communication technology (ICT) to the latter's local insurance companies.

Negotiations with Tapiola subsidiary Tapiola Data relating to the formation of the business will begin on June 1st, with the aim of establishing the company by October of this year.

The company will develop and produce ICT services which relate to the banking and insurance activities of Tapiola's's Local Insurance business.

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Heikki Nikku, Chief Executive Officer of Logica, said: "The letter of intent enables true partnership where both parties make investments to meet our common goals.

"We are creating new operating models and services by combining the knowledge in Tapiola Data with Logica's strong experience and expertise in producing business and technology services in the financial sector. The new company will also offer professional development and new career paths to skilled employees both locally and via our global operations."

The share price rose 2.66% to 67.65p by 08:24.

NR