Canada's CGI Group to buy Stanley for $1.07 billion

Fri May 7, 2010 6:55am EDT
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(Reuters) - CGI Group Inc, Canada's biggest computer consulting company, agreed to buy IT services provider Stanley Inc for about $1.07 billion in cash to expand its U.S. footprint.

CGI's offer of $37.50 a share represents a 29 percent premium to Stanley's close Thursday on the New York Stock Exchange.

Stanley has agreed not to solicit any competing offers.

The transaction will be funded from cash on hand and existing credit facilities, CGI said in a statement.

CGI shares closed at C$15.19 Thursday on the Toronto Stock Exchange, while those of Stanley closed at $29 on the New York Stock Exchange.

(Reporting by Isheeta Sanghi in Bangalore; Editing by Unnikrishnan Nair)