Affecto Shares Climb On All-cash Takeover Offer Of EUR 98 Mln From CGI

(RTTNews) - Shares of Affecto Plc climbed around 28 percent in the morning trading in Helsinki after the data analytics and business intelligence services firm received an all cash takeover offer from CGI (GIB, GIB.A).

In a statement, CGI, an IT and business process services firm, announced Tuesday that the all-cash tender offer of 4.55 euros per share will be made through its unit CGI Nordic Investments Limited.

Affecto's Board of Directors is unanimously recommending that its shareholders accept CGI's offer, which represents a total price of 98 million euros, or approximately C$146 million.

The deal price represents a 29.3% premium to its closing price on August 21.

The tender offer is subject to a number of conditions, including approval by the relevant regulatory authorities, such as competition authorities, and CGI gaining control of more than 90% of the outstanding shares of Affecto. The transaction is expected to close in first quarter of fiscal 2018.

With the deal, Affecto would bring more than 1000 highly-skilled professionals from across 18 offices. Over the last twelve months, Affecto has generated revenue of 119.8 million euros.

"The offer to merge with Affecto aligns with CGI's plan to profitably double the company in five to seven years through a combination of acquisitions and organic growth," said George Schindler, CGI President and Chief Executive Officer.

In Helsinki, Affecto shares traded at 4.50 euros, up 27.84 percent.