July 25, 2012 / 11:37 AM / in 5 years

CGI Group profit falls on Logica deal-related costs

July 25 (Reuters) - Technology outsourcing and consulting company CGI Group Inc posted a lower third-quarter profit on costs related to the $2.64 billion acquisition of Anglo-Dutch rival Logica Plc.

Net earnings fell to C$87.2 million ($85.52 million), or 33 Canadian cents per share, for April-June quarter from C$123.2 million, or 45 Canadian cents per share, a year earlier.

Revenue rose 5 percent to C$1.06 billion.

Margins fell to 8.2 percent from 12.2 percent.

CGI agreed to buy Logica for $2.64 billion in May.

The company booked C$1.48 billion in new contracts, extensions and renewals in the quarter, up from C$1.44 billion a year earlier.

Shares of CGI, which has a market value of $5.39 billion, closed at C$23.85 on Tuesday on the Toronto Stock Exchange.

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