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CGI Makes Closes Acquisition of Swedish Management and IT Consulting Firm Acando
Thursday 18 April 2019

18 April 2019 - Canada-based IT and business consulting services company CGI (NYSE: GIB) (TSX: GIB.A) has closed its acquisition of all outstanding shares of Swedish management and IT consulting firm Acando for SEK 41.45 per share, the company said.

The price represents a 44.2% premium to Acando's closing price on March 8, 2019. It represents a total price of SEK 4,320m (USD 460m) for all outstanding shares in Acando, including the assumption of SEK 93m in net debt corresponding to approximately CDN 614.7m.

The company currently trades under the symbol ACAN B on the NASDAQ Stockholm exchange. The tender offer is subject to a number of conditions, including approval by the relevant regulatory authorities, such as competition authorities and CGI gaining control of more than 90% of the outstanding shares of Acando.

CGI Nordic has immediately prior to the announcement of the offer entered into share purchase agreements with Svedulf Fastighets AB, Bjursund Invest AB and Svolder AB, to acquire in total 23,580,490 shares in Acando at a price of SEK 41.45 per share.

The acquisition of 10,421,558 of the above-mentioned shares (class B shares) is being completed immediately. The acquisition of the remaining 13,158,932 of the above-mentioned shares (3,639,990 class A shares and 9,518,942 class B shares) will be completed upon approval by German competition law authorities, which is expected to be obtained no later than around one month after the date of announcement of the offer.

Stockholm-based Acando would add more than 2,100 professionals to CGI from five countries across the region, notably in the major metro markets of Stockholm, Sweden; Oslo, Norway; and Hamburg, Germany.

Acando will complement CGI's global footprint and expertise across key commercial sectors such as manufacturing and retail as well as government, the group said.

For calendar 2018, Acando reported revenue of SEK 2,826 m (approximately CDN 402m).

With over 8,500 professionals in 64 offices across Denmark, Estonia, Finland, Latvia, Lithuania, Norway, Poland and Sweden, CGI has a strong local presence across the Northern Europe IT services market.

CGI's Northern European operation serves thousands of clients in public and private organisations to help them achieve operational efficiencies while harnessing innovation to better serve the digital needs of their customers and citizens.

Over 3,700 professionals in 19 locations provide a strong local presence in major metro markets across Germany and serve 200+ clients with commercial and public background.

Following the CGI key business principles of local proximity and long-term relationship CGI is helping its clients to address their current challenges by successfully connecting the traditional and digital enterprise processes and systems. Independent market analyst ISG ranked CGI in Germany in 2018/19 as market leader in "Cloud Transformation" and "Digital Transformation."

Founded in 1976, CGI is among the largest independent IT and business consulting services firm in the world. With approximately 74,000 professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from IT and business consulting to systems integration, outsourcing services and intellectual property solutions.
Date Published: 18/04/2019
Target: Acando
Country: Sweden
Deal Size: 460m (USD)
Sector: IT/Online Services
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: CGI