May 31, 2012

Canadian IT services firm CGI announced today it has agreed to buy Anglo-Dutch company Logica for 1.7 billion Pounds, creating a massive global IT firm.

The combined company will have approximately 72,000 employees in 43 countries and revenue of $10.4 billion Candian Dollars. CGI said the newly combined company will offer its clients across the world "the best mix of business and technology expertise as well as an unmatched combination of local and global delivery options."

Details of the recommended acquisition will be sent to Logica shareholders shortly and in any event within 28 days of the date of this announcement. It is anticipated that the acquisition will completed by the end of September 2012.

"This announcement is consistent with our profitable growth strategy and with our belief that the global consolidation of our industry is both necessary and inevitable," said Michael E. Roach, president and CEO of CGI, in a prepared statement. "It further underscores our ongoing commitment to support our clients as they expand their businesses locally and globally. In addition to operational breadth and depth, the combined business will have critical mass and key blue chip client relationships."

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as ...