Canada’s CGI Group to buy Logica

Anglo-Dutch IT services firm Logica has agreed to a £1.7 billion takeover approach by Canadian CGI Group.

The IT services company’s shares skyrocketed 69% on the news yesterday. Various press reports have suggested that a rival bidder may come forward as the share price rose from 45.2p to 110.9p.

According to the EHI Intelligence database, Logica manages four major IT systems at University College London Hospitals NHS Foundation Trust.

EHI also reported in April last year that NHS Isle of Wight had chosen Logica to build its first electronic patient record, using a combined integration and portal approach.

The company employs 41,000 people around the world, including 5,500 in the UK.

Commentators have speculated that the deal could lead to job cuts at Logica's head office in Berkshire. Logica already cut 3% of its workforce last year as its profits fell.

CGI is a rival provider of IT and business services and believes the acquisition will create a “global technology champion with significant presence throughout the Americas, Europe and Asia.”

The combined company will have approximately 72,000 staff in 43 countries and revenue of C$10.4 billion.