CGI Group Inc. announced a recommended cash acquisition of Logica for 105 pence (C$1.68) per ordinary share equivalent to a total purchase price of £1.7 billion (C$2.8 billion) plus the assumption of Logica’s net debt of £322 million (C$515 million) as of December 31, 2011.
CGI feels the transaction will strengthen it’s role as a provider of IT and business process services.
“This announcement is consistent with our profitable growth strategy and with our belief that the global consolidation of our industry is both necessary and inevitable. Logica is a leading business and technology service company with talented and committed employees and long-term client relationships. It further underscores our ongoing commitment to support our clients as they expand their businesses locally and globally. In addition to operational breadth and depth, the combined business will have critical mass and key blue chip client relationships. We warmly welcome Logica’s professionals and believe that the combined business will provide new and larger growth opportunities for employees and clients, as well as offering CGI shareholders the superior and industry leading returns we have delivered historically,” said Michael E. Roach, President and CEO, CGI. “We believe Logica is the right acquisition, at the right price and at the right time to create one of the very few independent global end-to-end technology services providers.”
CGI anticipates completing the acquisition by the end of September 2012.
Read the full terms of the agreement on the CGI website here.
