Software and IT services business LogicaCMG bolstered its "strength and scale" by unveiling a proposed £882 million deal for a Nordic rival yesterday.

London-based LogicaCMG - a former FTSE 100 Index stock - said the acquisition of IT services provider WM-data would position it well to win bigger contracts.

The deal, which is still subject to shareholder approval, would make LogicaCMG the seventh largest company in terms of IT services revenues in Europe.

The new combined business is likely to employ around 9,000 people in the Nordics - compared with 8,000 staff in France and 6,000 people in the UK.

Chief executive Dr Martin Read said: "Our customers want to do business with a smaller number of larger suppliers who can provide them with a broader range of offerings and support them internationally."

Logica - which has a presence near the NEC - described the Nordic region as an attractive IT services market with high usage rates and estimated growth of around six per cent a year.

The UK company's exposure to the region - the fourth largest European market - is limited as its operations are currently focused on the UK, the Netherlands and France.

With limited geographical overlap, LogicaCMG said there were significant opportunities to cross-sell products and services across the two businesses.

Dr Read added: "The acquisition of WM-data will further strengthen LogicaCMG's market position and its ability to win large global contracts."

WM-data's customer base includes a significant proportion of the largest Nordic companies, including Ericsson, SAAB and Volvo Group.

The move comes following Logica's purchase of Edinfor on the Iberian peninsula and followed it with last year's acquisition of Paris-based Unilog for 930.3 million euros (£630.6 million).

The deal for Unilog put France on a par with the UK and the Netherlands in terms of the importance of revenue streams, while giving it a platform to become profitable in Germany.

The cash-and-share offer would represent a 25 per cent premium over WM-data's average share price for the last three months.

Logica has sites around the UK, including at Leatherhead, Altrincham, Bristol and Bridgend.