IBM partners with Brazil billionaire Batista's EBX

US computer giant IBM has signed a deal to purchase 20 percent of a subsidiary of Brazilian billionaire Eike Batista's EBX group in exchange for a $1 billion contract, the companies announced.

"Partnering with one of the largest technology companies in the world offers EBX Group a broad portfolio of modern IT solutions," Batista said in a statement on Wednesday.

"IBM, in turn, will expand its presence in one of the most promising markets in the world, working with a group that has a significant presence in strategic sectors."

Under the deal IBM will purchase 20 percent of SIX Automacao, an EBX company focused on technology. EBX will in turn outsource its information technology operations to IBM for $1 billion over 10 years.

Last week Abu Dhabi's state investment fund Mubadala Development announced a $2 billion investment in EBX group, which includes OGX (oil and gas), OSX (offshore naval industry), MMX (mining), LLX (logistics) and MPX (energy).

(c) 2012 AFP