CGI Group Inc. (NYSE: GIB; TSX: GIB.A) has entered into a definitive agreement to acquire Stanley Inc. (NYSE: SXE) in a cash tender offer that is worth approximately $1.07 billion.
CGI stated that it will pay $37.50 per share and will be funded by existing credit facilities and current “cash on hand.”
“The acquisition of Stanley is in line with our Build and Buy profitable growth strategy, and is consistent with our commitment to continue expanding our footprint in the strategic U.S. market and specifically in the U.S. federal market. It is also consistent with our commitment to bring increased value to our clients and employees. From an investor perspective, this transaction will be accretive to GAAP earnings per share within the first 12 months, ” said Michael E. Roach, President and CEO, CGI. “CGI has a strong culture and market momentum that will provide additional professional opportunities and growth for all our employees, including the Stanley professionals, whom we warmly welcome to CGI.”
Philip O. Nolan, Chairman, President and CEO of Stanley, said “This is a great transaction for all stakeholders, as it provides Stanley employees with additional growth opportunities as part of a global IT services player and our clients with a powerful combination of highly-skilled employees and additional scale to enhance value. For our shareholders, this transaction provides attractive returns and, accordingly, our Board intends to recommend that Stanley shareholders accept this offer.”
“Joining forces with Stanley is a critical element of our U.S. growth strategy. The combination of Stanley’s defense and civilian IT and BPO services with CGI’s end-to-end capabilities, mission-critical solutions, and strong client relationships cements our position as a player of scale across the entire U.S. Federal Government, ” said Donna Morea, President U.S., Europe and Asia, CGI. “Together, CGI and Stanley are a great cultural fit, sharing deep industry knowledge, a strong commitment to employees, and a reputation for operational excellence.”