Sears Shops at Computer Sciences

The companies discuss a potential $2 billion technology services deal.
Publish date:

Sears Roebuck

(S) - Get Report


Computer Sciences


are talking about a potential $2 billion technology services deal.

The companies announced on Thursday that they plan to negotiate an agreement under which Computer Sciences would provide Sears with desktop and server computer systems. Computer Sciences will also help support the retailer's Web site and voice and data networks.

Sears would pay Computer Sciences about $200 million a year for up to 10 years under the expected agreement. The two companies plan to have the deal signed during the second quarter.

The outsourcing agreement would allow Sears to focus on its core retail business and should provide some cost savings, the companies said. As part of the expected deal, Computer Sciences would hire "substantially all" of Sears' 260-person technology infrastructure team, the companies said.

Prior to the announcement, Sears shares closed regular trading off 96 cents, or 2.1%, to $44.48, while Computer Sciences traded down 2 cents, or 0.1%, to $41.33.