CGI Group to buy U.S. IT provider Stanley in $900M deal

Canada’s IT giant CGI Group has announced it has entered into an agreement to acquire the U.S.-based IT provider Stanely Inc. in an all cash deal valued at about $900-million.

CGI will pay $37.50 per Stanley share, a premium of 23.3-percent over the company’s 30-day weighted average price (a premium of 38.3-percent over the last 60-days).

The premium to be paid brings the total enterprise value of Stanley at a $1.07-billion valuation.

The strategic acquisition will help CGI penetrate lucrative U.S. markets that Stanely has already established, especially in the U.S. military and intelligence space.

 CGI said today the acquisition would help expand the company’s footprint in the strategic U.S. federal market. Additionally, CGI will now have access to additional U.S. projects that are financed under the government stimulus package.

The acquisition will now bring almost 50-percent of total revenue from U.S. operations.

The respective board members of each firm have already approved the acquisition.

The CGI stock (NYSE:GIB) is trading down 0.97-percent to $14.30 per share in mid-day trading.

The Stanley stock (NYSE:SXE) is up 26.93-percent to $36.81 per share also in mid-day trading.