Canadian IT services company CGI is acquiring SCISYS Group plc
SCISYS Group plc has received a cash offer from Canadian company CGI Inc. The offer price of 254.15p represents a 24.6% premium to yesterday’s closing price and values SCISYS at c£78.9m. In addition, SCISYS shareholders will receive the final dividend of 1.73p. According to research firm Edison, the offer price translates to c20x its FY19 earnings forecast, 1.2x FY20e revenues and 11x EBITDA.
SCISYS Group is a leading developer of information and communications technology services. It operates in a broad spectrum of market sectors, including media & broadcast, space, government & defence and commerce. SCISYS clients are predominantly blue-chip and public-sector organisations including the Environment Agency, the Ministry of Defence, Airbus Defence & Space, Arqiva, Vodafone, the European Space Agency, Eumetsat and the BBC. The Company has UK offices in the UK and Germany.
Founded in 1976, CGI is a leading independent information technology and business consulting services firm. With more than 77,000 consultants and professionals across the globe, CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. With annual revenue of C$11.5 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB).
"CGI's offer to merge its operations with those of SCISYS is aligned to our Build and Buy strategy, providing opportunities to expand our industry depth in space, defence, government and media in the UK and Germany," said George Schindler, President and CEO of CGI.
Mike Love, Chairman of SCISYS, said "the Board of SCISYS is unanimously recommending this deal to shareholders, viewing it as a wholesale endorsement of the success SCISYS has achieved to date. We believe SCISYS and CGI are highly complementary businesses sharing similar values and are confident that the combination will enable SCISYS to benefit from CGI's size, strength and global reach."
LGB acts as the arranger of Scisys’ secured loan note programme, which contributed to the financing of Scisys’s’ acquisition of Annova Systems GmbH in December 2016.