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Logica shareholders accept bid from Canada's CGI

Michael Roach

London and Montreal: The prospect of rival bids for UK technology consultancy Logica have evaporated following the landslide acceptance by its shareholders of CGI's offer of 105 pence per share at a General Meeting in London this week.

The bid by Canadian firm CGI for Logica, one of the last indigenous names in UK consulting, values the firm at £1.7 billion.

Now 99.54% of Logica shareholders have accepted the cash offer recommended by CEO Andy Green and his board in May.

CGI says that subject to some technical conditions, it is expects that the acquisition of Logica will be completed on August 20, 2012.

"We are very pleased with level of shareholder support shown for our transaction and anticipate a timely closing," commented Michael Roach, President and CEO, CGI.

"We are excited to welcome our new Logica colleagues and remain committed to bringing the enhanced capabilities of our combined business to clients while creating new career opportunities for our professionals and additional value for our investors."

"The combination of CGI and Logica represents a unique transformational opportunity," added Roach.

"We will immediately start the process of successfully integrating the two businesses to create a global technology services leader with 72,000 professionals worldwide."

Some analysts had been skeptical about CGI's ability to integrate itself and Logica into a global service provider, but Logica's key shareholders, including Schroder and Artemis, clearly decided that a 50% premium on the firm's share price this year, and given its continuing difficulties in continental Europe, was persuasive enough.

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