Sept. 19 (Bloomberg) -- Unilog SA, France's third-biggest computer-services company, said it agreed to a takeover by European rival LogicaCMG Plc for about 931 million euros ($1.13 billion)

LogicaCMG, Europe's third-biggest computer-services provider, said on Sept. 16 that it offered 73 euros per Unilog share in an attempt to reverse losses in France and Germany.

The price is 6.5 percent higher than Unilog's Sept. 15 close, and 29 percent more than the price on June 30, a day before Le Figaro reported Unilog was for sale.

London-based LogicaCMG, whose customers include the U.K. Ministry of Defense, last month told investors it's on course for a third straight unprofitable year in France and Germany, saying it needs to be bigger to make a profit. Paris-based Unilog gets almost all its revenue in the two countries.

Shares in LogicaCMG dropped 9.75 pence, or 5.5 percent, on Sept. 19 to 168 pence, the steepest one-day decline since May 2004. Shares in Unilog last traded at 74.1 euros, the highest since April 2002.

Unilog, whose clients include Airbus SAS, in August reported first-half sales of 378.8 million euros. Its home market, France, accounted for 81 percent of revenue. German sales were 15 percent of the total.

To contact the reporter on this story: Angus Whitley in London at awhitley1@bloomberg.net

Last Updated: September 19, 2005 02:20 EDT