Danish Financial services group Danske Bank is selling its 45% stake in DMdata to IBM and will outsource more of its IT operations to the technology services firm as part of the deal.
Danske says it expects to book a capital gain of just over DKr100m on the sale of its shares in DMdata in the second half of 2004.
The DMdata unit was established in 1997 by the bank and IT services firm Maersk Data, which IBM has also bought out.
The bank is also expanding its current outsourcing contract with DMdata to include both centalised and decentralised IT operations, and is extending the deal from three and a half years to 10 years.
Danske will continue to carry out system and product development in-house. Under the deal, some 330 bank IT staff will transfer to DMdata.
The bank says the outsourcing deal will cut IT operating expenses and lead to cost savings of more than DKr100m by 2005.
Peter Straarup, chief executive, Danske Bank, adds: "With this decision, we aim to ensure the future development and stability of our increasingly complex IT operations."