CGI sets deadline for Stanley tender offer
Company also set to file relevant documents with SEC
- By David Hubler
- May 20, 2010
CGI Group Inc. is taking the next steps in its previously announced $1 billion cash bid to acquire Stanley Inc.
The provider of information technology and business processing services said its tender offer will expire at midnight Thursday, June 17, Eastern Daylight Time, unless it is extended.
CGI, a unit of Montreal-based CGI Group plc, also said it would file today all relevant forms with the U.S. Securities and Exchange Commission.
Earlier this month, CGI announced that it had made a tender offer of $37.50 per share for all outstanding shares of Stanley common stock. The deal is net to the seller in cash, without interest and less any required withholding taxes.
The purchase price would be about $1.07 billion. Stanley’s board of directors already has unanimously approved the transaction.
“The acquisition of Stanley is in line with our build-and-buy profitable growth strategy,” said CGI President and Chief Executive Officer Michael Roach, in the May 7 announcement.
When the acquisition is completed, Stanley will become part of CGI Federal, more than doubling the size of CGI’s U.S. government business. The deal also gets CGI into the U.S. defense market on a large scale for the first time, analysts said.
CGI Group, of Montreal, Que., ranks No. 78 on Washington Technology’s 2009 Top 100 list of the largest federal government prime contractors. Stanley ranks No. 45 on the list.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.