CGI to purchase Swedish strategy and tech consultancy Acando
Montreal-based technology consulting firm CGI has a put in a $614.7 million cash offer to purchase Stockholm-based business and technology consulting firm Acando. The transaction is slated to close in the third quarter, pending regulatory approval.
CGI, through its subsidiary CGI Nordic Holdings Ltd., offered 41.45 Swedish Kronors (approximately $6) per share to acquire all outstanding shares of Acando – a 44.2% premium over the firm’s closing price on March 8. Acando’s board unanimously recommended its shareholders take the deal, which includes the assumption of approximately $13.2 million in debt.
Acando has more than 2,100 professionals across Sweden, Finland, Norway, Germany, and Latvia, with key offices in the major metro markets of Stockholm, Oslo, and Hamburg. The firm’s central offerings include strategy and operations consulting, sales and marketing, IT strategy and architecture, app development, and cybersecurity. The firm reported revenue of $402 million in 2018.
The deal significantly bolsters CGI’s strength in its Northern Europe and Germany operations, where it has 8,500 and 3,700 employees, respectively. The Montreal-based company, which employs 74,000 globally, works on a business principle of local proximity. The deal gives CGI more local resources to satisfy demand for tech consulting services in the booming continental European market.
"CGI's offer to merge with Acando is aligned to the metro-market-based element of our acquisition strategy," George D. Schindler, CGI president and CEO, said. "Our continued investment in CGI's proximity model is more relevant than ever as clients continue consolidating their partners to a fewer number of trusted ones who have the capabilities, scale, and quality delivery necessary to help drive growth and achieve efficiencies."
“In fact, client demand for end-to-end services, from consulting and intellectual property-based solutions to outsourcing, continues to accelerate as technology becomes core to our clients' operations," he added.
Heikki Nikku, CGI’s president of North Europe operations, sees the combination as a natural fit. "By combining CGI's exceptionally strong position in data-driven digital business and IT transformation practice with Acando's business consulting and human-centric digital innovation approach, we strengthen our unique blend of skills and capabilities for the benefit of our clients as we pursue profitable future growth together," he said.
Aside from reinforcing its European footprint, the pending deal will also expand CGI’s consulting expertise in the key commercial sectors of manufacturing, retail, and government.
Related: CGI acquires German IT and business consultancy ckc AG
