CGI intends to close the acquisition byBudget Year September and expects the acquisition to increase its earnings per share byBudget Year between 25 and 30 percent, excluding acquisition-related and integration costs.
Logica provides business consulting, systems integration and outsourcing to clients around the world, including many of Europe’s largest businesses
The transaction will be funded through a combination of revenue streams including $971 million worth of subscription receipts exchangeable into new Class A shares.
Nearly $1.8 billion in debt funding will come from the Canadian Imperial Bank of Commerce, the National Bank of Canada and the Toronto-Dominion Bank.
CGI will also draw approximately $650 million from its existing credit facility and assume Logica’s estimated net debt of $500 million.
Logica shareholders will receive details about the acquisition within 28 days.