Computer services companies Logica and CMG are in talks to merge, it was announced today.
The pair, both of which were once members of the prestigious FTSE 100 Index, have battled against tough conditions and seen their shares slump in the wake of the tech bubble bursting.
In a statement today the pair said early discussions were being held regarding the “comercial merits of a merger”.
A deal would see Logica shareholders owning 60% of the new company and CMG shareholders taking 40%.
Shares in CMG surged 29% to 51.5p following the announcement, while Logica fell 2% to 122p.