NEW YORK ( TheStreet) -- Information-technology firm CGI (GIB) has agreed to buy Stanley (SXE) for $1.07 billion in a cash tender offer at $37.50 a share bringing additional scale to CGI's U.S. operations, which will account for nearly half of CGI's global revenue.
The purchase price represents a premium of 23.3% over Stanley's 30-day volume weighted average stock price and 38.3% over its 60-day average. The transaction will be funded from CGI's cash on hand and existing credit facilities.
From an investor perspective, this transaction will be accretive to GAAP earnings per share within the first 12 months, the company say. CGI was trading up 0.5% at $14.51 in after-hours trading, and Stanley was trading at $29.50, up 1.7%.
Stanley provides systems and professional service support to the federal government.-- Reported by Andrea Tse in New York Follow Andrea Tse on Twitter and become a fan on Facebook.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV