The Financial Post's take on CGI's acq. of CDSL
The following is from Canada Stockwatch - says deal doubles CGi's size
CGI Group Inc (The) GIB.A
Shares issued 3,763,952 Apr 4 close $17.65
Mon 7 Apr 97 In the News
The Financial Post reports in its Saturday edition that CGI Group, a fast-growing computer consultant and outsourcer, will double its annual revenue by swallowing Guelph-based information technology firm CDSL Holdings for $36.5 million in cash and stock.
Reporter Robert Gibbens says the deal makes CGI truly national and reinforces its position in the outsourcing market, which is growing at nearly 25 per-cent annually. CGI bought CDSL from 80 per-cent owner Co-operators Group, the Credit Union Central of Saskatchewan and several other institutional holders. CGI will
provide up to $100 million of outsourcing services to Co-operators over five years, with a five-year renewal option. In the year ending September 30, Mr Godin says, the deal will bring revenue to about $215 million and to $260 million in fiscal 1998. In 1996, revenue was $122 million and earnings were $2.7 million, or $0.32 a share.
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Note by BM - for the quarter ending Dec 31, earnigs had increased to 0.11/share. Results for end of March should probably be out by end of April. Note also that the 3.7 M shares mentioned above are the A shares only; total float is somehwre around 9M with only 25% in public float - over 50% held by management and Bell. |
