NEW YORK (TheStreet) -- Information-technology firm CGI (GIB) - Get Report has agreed to buy Stanley (SXE) - Get Report 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
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