Schlumberger to Buy Tech Firm Sema

Schlumberger Ltd., an oil-field service company that has expanded into electronic meters and “smart” bank and credit cards, agreed to buy computer system consultant Sema for $5.3 billion in cash.

But Wall Street had a harsh reaction, sending Schlumberger shares down $9.20, or nearly 12%, to $69 on the New York Stock Exchange.

Sema, which is 17%-owned by France Telecom, helps businesses set up computer systems and provides software for mobile phones and electronic payment systems.

Schlumberger, a leader in supplying oil-well-monitoring equipment, has branched out into businesses that aren’t dependent on high oil prices. Those include selling smart cards with embedded microchips that can be used to withdraw money from banks or to make long-distance phone calls.

Schlumberger Chief Executive Euan Baird’s plan is to expand beyond providing information technology products. He wants to provide a package of products, services, software and consulting to oil, utility, banking, wireless telecommunications and transportation companies.

“What Sema brings is a huge input of consulting and its integration skills to accelerate a direction taken over the last five years,” Baird said.

But some analysts criticized the move, saying it will hurt earnings just as Schlumberger looks set to cash in on any jump in exploration spending by oil companies.

Schlumberger, the second-biggest oil-field service company after Halliburton Co., got 73% of its $9.6 billion in 2000 revenue from drilling services.

Schlumberger has agreed to buy seven companies in the last year to add more tech businesses to its lineup. The company said Friday that it will buy Bull’s smart-card unit for about $324 million.

Sema CEO Pierre Bonelli will head Sema’s businesses at Schlumberger, the companies said.