Canadian IT services firm CGI Group has announced a bid to acquire all of the outstanding common shares of business technology outsourcer Cognicase and has offered to pay C$4.25 per share.
CGI has entered into a lock-up agreement with the National Bank of Canada, which owns 15 per cent of the outstanding shares.
If its bid is successful, CGI says the outsourcing contracts in place between the bank and Cognicase will be extended for a further 10 years.
Serge Godin, chairman of the board and CEO, CGI, says the transaction will contribute to the ongoing consolidation of the Canadian IT services industry.
"It will provide greater stability to the clients of Cognicase and CGI, while ensuring they have access to a broader range of IT services," adds Godin.
The offer will expire January 13 2003.