The Channel logo

News

By | Kelly Fiveash 31st May 2012 09:03

CGI Group beds Logica in £1.7bn cash deal

Shares leap 64% at news of outsourcing nuptials

Anglo-Dutch tech group Logica is being scooped up by Canada's CGI Group in a £1.7bn cash deal.

The acquisition, expected to complete in September this year, was agreed by the European wing of IT outsourcing company CGI.

Shares in Reading-headquartered Logica rocketed more than 60 per cent following the news, with an opening price of 108 pence on London's Stock Exchange this morning.

According to its website, CGI provides IT and biz-process services to around 125 partners, and was founded in 1976.

Logica said its shareholders would be entitled to receive 105 pence in cash per share. “Over the past few years Logica has successfully integrated its European businesses into a single organisation with a clear brand and position in its main markets," said Logica chairman David Tyler.

"Significant investments have been made in sales and marketing. It has established a strong presence in outsourcing which now represents 45 per cent of the business.

"Logica has also cut overhead and staff costs substantially and offshore numbers have more than doubled, improving its cost competitiveness." ®

comment icon Read 5 comments on this article alert Send corrections

Opinion

Neil McAllister

Claims that cloud will drive Oracle's future growth ring hollow
Pure Storage array

Neil McAllister

How the cloud taught Redmond to play by a new set of rules

Features

Pebble Steel
Meet the man who accidentally created the smartwatch hype
No, silly... he was the fall guy for years of Finnish folly
Fraud image