MONTREAL – CGI Group Inc. is acquiring the British-based information technology services firm Logica Plc for 1.7 billion pounds, or $2.8 billion Cdn, the two companies announced Thursday.
The Montreal-based CIG said Logica shareholders would get 105 pence in cash for each share, a premium of almost 60 per cent on Wednesday’s closing share price of 65.70 pence.
Logica stock has traded at an average of 70.2 pence for the one-month period ending May 30, CGI said.
Get weekly money news
The purchase will be effective by the end of September 2012, it said.
CGI (TSX:GIB.A) chief executive Michael Roach said the acquisition was consistent with the company’s growth strategy and its belief that global consolidation of the industry is both necessary and inevitable.
Logica chairman David Tyler said combining the two businesses will help meet clients’ requirements for a more comprehensive international presence.
Founded in 1976, CGI is one of the largest independent IT and business process services firms in the world with about 31,000 employees and $4.3 billion in annual revenues.
On the Toronto Stock Exchange, its shares closed up five cents at $21.01 on Wednesday.
Comments
Want to discuss? Please read our Commenting Policy first.