Heavyweight Canadian IT services company CGI has agreed a deal with Affecto PLC, a Helsinki based information management firm, with an eye to further expanding its European presence in line with its future plans.
"The offer to merge with Affecto aligns with CGI's plan to profitably double the company in five to seven years through a combination of acquisitions and organic growth," said CGI’s CEO George Schindler.
With Finland’s Affecto specialising in strategic IT consultancy, cloud-based solutions, data analytics and the like, the company’s takeover will nicely complement CGI’s line of business.
"In turn, for the benefit of our respective clients, CGI brings Affecto depth and end-to-end capabilities, including access to a network of global and onshore delivery centres, robust intellectual property portfolio, managed services and high-end IT consulting,” continued Schindler.
“We will continue to implement an established build-and-buy strategy that adds to our strength in the Nordics and around the globe"
The all-cash offer will see CGI paying €4.55 (C$6.74) per share for the entirety of Affecto, at the total price of C$146mn, a 29.3% premium on the company’s current share value, with conditions requiring that at least 90% of Affecto’s shares be sold to CGI.
If successful, the merger that is expected to close in Q1 of 2018 will see around 1,000 employees added to CGI’s existing portfolio, with 8,000 of its workers currently employed in 55 offices in the Nordic region.