Philips to increase BSO/Origin stake

Philips, the Dutch electronics group, is to increase its 41 percent stake in BSO/Origin, the Dutch software consultancy, to

An unspecified majority holding by transferring its own information technology services business to the company.

The new company, to be called Origin, will have annual turnover of about F1 2bn ($1.25bn) and a workforce of 10,000, making it one of Europe's largest providers of computer services. It is expected to be established in early 1996.

Philips' consultancy business, Philips C + P, specializes in communication and data processing, while BSO/Origin, which had 1994 turnover of Fl 816m, concentrates on tailoring software to companies' needs.

The deal will enable Philips and BSO/Origin to respond to the growing need for integrated computer services, including linking up networks of computers within companies. The two companies declined to give any financial details. Further information on the deal is expected to be released in November, BSO said. BSO/Origin and Philips work jointly in several countries, including the UK, Sweden and Mexico. The new company will have operations in 27 countries.

Ronald van de Krol, Amsterdam.