SDVKY Sandvik AB (PK)

   By Dominic Chopping 
 

STOCKHOLM--Swedish engineer Sandvik AB (SAND.SK) said Tuesday it will pay International Business Machines Corp. (IBM) 2 billion Swedish kronor ($288.6 million) to outsource part of its information technology infrastructure services.

The five-year deal includes operation of all server platforms, including the facilities where servers are placed, as well as all services to manage office computers.

The contract was signed at the end of the second quarter and under the terms of the agreement IBM will offer employment to Sandvik's employees currently working in these areas, the company said.

At 0724 GMT Sandvik shares traded 1.1% higher at SEK88.95.

-Write to Dominic Chopping at dominic.chopping@dowjones.com