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History

Logica was founded by Len Taylor, Philip Hughes and Pat Coen as a systems integration business in 1969.[1] Early projects included the control system for the natural gas grid in the UK in 1971 and the design of the SWIFT network for international money transfers in 1973.[1]

In 1974, Logica, together with the French company SESA (now part of Capgemini), set up a joint venture, Sesa-Logica, to undertake the European Informatics Network development. This project, undertaken with the support of partners throughout Europe and with the assistance of Bolt, Beranek and Newman in Cambridge, Massachusetts, brought the core datagram technology of the Arpanet, now the Internet, to Europe for the first time, and established a network linking research centres in a number of European Countries, including CERN, the French research centre INRIA and the UK’s National Physical Laboratory.[2]

In 1975, Logica developed the first electronic typing pool – Unicom – for Unilever. This development allowed the complete functions of a typing pool to be automated into a single system supporting about 50 workstations. With the support of the UK’s National Enterprise Board the company established a new subsidiary to exploit this technology, Logica VTS. A range of stand alone word processors, the VTS 100 and the VTS 2200, were developed and were manufactured at a purpose built factory in Swindon. These machines were sold internationally by BT and by International Computers Ltd and were amongst the first word processors to achieve mass sales. However the advent of the Personal Computer and software such as Microsoft Word led to the decline of this business and its ultimate closure.[3]

At this time Logica set up operating subsidiaries in the Netherlands, Australia, Sweden, the United States and elsewhere as well as joint ventures in Hong Kong with Jardine Matheson, in Italy with Finsiel and in the UK with British Airways. The Company floated on the London Stock Exchange on 26 October 1983.[1]

In 1984 the Company developed the automated clearing system for the UK banks (CHAPS)[1] as well as the customer service system for British Telecom.[1]

The Company pioneered the automated ticketing system for London Underground in 1987[1] and the system which randomly generates premium bond numbers (ERNIE) in 1988.[1]

Logica was also responsible at this time for the first commercial Short Message Service (SMS) system to Telia in Sweden: this was later to become a major line of business for the Company.[1]

During the late 1980s and early 1990s the Company was led by Dr David Mann.[4]

Dr Martin Read was recruited from GEC Marconi and appointed CEO in August 1993.[1] All the executive directors left the company during the two years following his appointment.[5] In 2001 the Company secured an outsourcing contract to create and operate a new case management system for the Crown Prosecution Service.[6] At this time the level of Dr Read's remuneration received attention when it was revealed that he enjoyed a £28 million pay packet.[7]

The merger of Logica (60%) with CMG (40%), on 30 December 2002, represented the union of an established technology firm (Logica) with an established consulting firm (CMG).[8] In June 2003 LogicaCMG’s software controlled the Beagle 2 probe after separation from the Mars Express orbiter.[9]

In 2005 LogicaCMG purchased 60% of the Portuguese company Edinfor,[1] and in March 2008 purchased the remaining 40%. In 2006, LogicaCMG purchased the French company Unilog and the Swedish company WM-data.[1]

The Company suffered some embarrassment in 2006 when laptops containing police payroll data were stolen from LogicaCMG[10] and Transport for London terminated an IT outsourcing contract with LogicaCMG after payment disputes and a failure to meet service level agreements.[11]

On 20 February 2007 LogicaCMG Telecom Products was sold for £265m (US $525m) to private investors Atlantic Bridge Ventures and Access Industries and became known as Acision.[12]

Following a profit warning in 2007,[13] Andy Green was recruited as the new CEO and took office from 1 January 2008.[14] On 27 February 2008, the Company changed its name back to Logica.[1] In April 2008 Green announced a major restructuring programme for the company, leading to 1,300 job losses.[15] Also in May 2008 the Company announced that it would outsource more of its activities including SAP support and HR and payroll administration to Makati City in the Philippines