☛ Want the latest procurement and supply chain news delivered straight to your inbox? Sign up for the Supply Management Daily
31 May 2012 | Kamalpreet Badasha
Canadian IT outsourcing company CGI is to take over the UK business services provider Logica for £1.7 billion, following unanimous approval by Logica’s board of directors.
The company expects to make annual cost savings of around £125 million through the merger, costing an estimated £165 million over three years. CGI is to pay 105 pence per share to complete the purchase.
The combined organistion will employ 72,000 staff worldwide in 43 countries. CGI anticipates the takeover to be completed by September 2012.
Michael Roach, president and CEO of CGI said in a statement: “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.”