CGI and CACI close AMS acquisition

The deal that divided all of the assets of American Management Systems Inc. between CGI Group Inc. and CACI International Inc. closed today.

Fairfax, Va.-based AMS was sold to Montreal-based CGI for $858 million, in a deal announced in March. The Canadian company retained AMS' commercial and nondefense government business, but AMS' U.S. Defense and Intelligence Group went to CACI for $415 million. Consequently, CGI's net cost was $443 million.

CGI's portion of AMS will become a wholly owned subsidiary of the Canadian company. The acquisition will strengthen CGI's ability to compete in the U.S. government market against large integrators for e-government and information technology outsourcing work.

AMS' U.S. Defense and Intelligence Group will be absorbed into CACI Enterprise Solutions Inc. of Fairfax, Va., a subsidiary.

CACI's acquisition of AMS' defense and intelligence assets expands the company's capabilities in defense business management and mission-critical functions, such as financial management solutions and consulting, acquisition and procurement systems, logistics and engineering systems and services, and information sharing.

It also broadens CACI's offerings on large-scale, Web-enabled systems and provides significant new depth of expertise for the company in software development systems.