CGI Group, a global provider of IT and business process services, has announced a recommended cash acquisition of Logica for a total purchase price of £1.7bn plus the assumption of Logica’s net debt of £322m as of 31 December 2011.
In a statement, CGI said it strongly believes this transaction will strengthen its capabilities across the five key attributes of a global leader in IT and business process services:
- People and culture: an exceptional and talented team driven towards the common goal of client success and, as owners, benefiting from a performance-based culture.
- Client proximity with blended global delivery: enhanced client intimacy and service delivery bringing the best capabilities and solutions to clients anywhere in the world, all the time.
- End-to-end capabilities: enhanced global offering with expanded platforms and the ability to cover the entire customer services supply chain.
- Operational excellence: proven methodologies and frameworks to ensure on-time, on-budget project delivery.
- Mission critical intellectual property: expanded portfolio of opportunities for profitable revenue growth, improved revenue quality mix and over time, increased margins.
The combined company will have approximately 72,000 professionals in 43 countries.
“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,” said Michael Roach, president and chief executive officer (CEO), CGI. “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.”
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