CGI Group, a provider of information technology and business processing services, has agreed to acquire Stanley, a provider of IT services and offerings to US defence, intelligence and federal civilian government agencies, for an enterprise value of approximately $1.07bn, to bring additional scale to its US operations.
The cash tender offer at $37.50 per share, represents a premium of 23.3 per cent over Stanley's 30-day volume weighted average stock price and 38.3 per cent over its 60-day average. The transaction will be funded from CGI's cash on hand and existing credit facilities.
CGI said that the acquisition will bring additional scale to its US operations, which will account for nearly half of its global revenue. The combination of CGI's US federal business unit and Stanley bring additional resources and capabilities to the US Government market.
The consolidated company will continue serving all three branches of government, 12 Cabinet-level agencies, the four military services, and a range of intelligence and national security agencies, CGI said.
Upon completion of the transaction, Stanley will become part of CGI Federal, a wholly-owned subsidiary, which currently provides services to the US Federal, defence, intelligence and civilian agencies.
Donna Morea, president of US, Europe and Asia operations at CGI, said: "Joining forces with Stanley is a critical element of our U.S. growth strategy. The combination of Stanley's defence 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."