CGI Group to buy Stanley Inc. for $903 million to expand its US federal business
By APFriday, May 7, 2010
CGI Group to buy Stanley Inc. for $903 million
NEW YORK — Information technology company CGI Group Inc. said Friday it will buy Stanley Inc. for $903 million cash, or $37.50 per share.
The Canadian company is offering a premium of 29 percent from Stanley’s Thursday closing price of $29. The companies said their boards have approved the sale and Stanley directors and executives have pledged to vote their shares in support of the deal.
Stanley, based in Arlington, Va., provides systems and professional service support to the federal government. CGI said it will make Stanley part of its CGI Federal unit, which does business with the U.S. government and defense, intelligence, and civilian agencies.
CGI will tender an offer for Stanley shares in the fall. It plans to pay for Stanley with cash on hand and funds from its existing credit facilities. It expects the acquisition to add to its profit within the first year of closing.
CGI will need approval from antitrust regulators and Stanley shareholders to complete the deal.
The combined company will have $4.5 billion in annual revenue, CGI said. In January, Stanley forecast annual revenue of $868 million to $876 million.
Stanley shares are up about 30 percent since mid-February, when they were trading at annual lows.
