CGI and CACI close AMS acquisition
- By William Welsh
- May 03, 2004
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.
William Welsh is a freelance writer covering IT and defense technology.