CGI adds 670 IT experts with £79 million acquisition of SCISYS

Global IT services consultancy CGI has announced it is set to acquire SCISYS, as it looks to enhance its IP portfolio across Europe’s space agencies. SCISYS is a pan-European computer software and services company headquartered in Dublin.

Founded in 1976, CGI is one of the world’s largest independent IT professional services groups, and has been enjoying heightened demand in the era of digital disruption. The firm has worked on a number of keystone technology projects in the UK in recent months: it's delivering a vote counting e-solution for the 2020 London elections, assisting the Scottish Border Council to boost the digital education standards of Scotland, and partnering with global bank HSBC to launch a transformational trade technology platform.

Now, as CGI looks to strengthen its services across the continent of Europe, it is set to acquire SCISYS, a provider of IT services in the UK and Germany. A cash offer of 254.15 pence per share to acquire the entire issued and to be issued ordinary share capital of SCISYS through its wholly owned indirect subsidiary CGI Group Holdings Europe. While the deal is not officially done as of yet, as it requires SCISYS’s shareholders to agree, it has been unanimously recommended by the firm’s Board of Directors, so is expected to be a formality.

The total fee will stand at £78.9 million, reflecting the importance CGI places on the deep expertise and innovative solutions in the space and defence sectors offered up by the acquisition. With annual revenue of approximately £58.4 million and approximately 670 highly skilled professionals predominantly based in the UK and Germany, SCISYS is a medium-sized software and IT services company, and develops information and communications technology services, e-business, web and mobile applications, editorial newsroom solutions and advanced technology solutions.

Originally headquartered in Chippenham in the UK, in 2018, SCISYS moved its head office to Ireland. While its UK and PLC headquarters remain on British shores, though, the move to station a registered office in Dublin was seen as a response to the then-pending Brexit. That move will undoubtedly have helped attract suitors from CGI, which works for a number of European space agencies, and the idea of SCISYS being ‘Brexit-proofed’ by having trading posts in both the UK and on the mainland will help cater to both markets after the culmination of Britain's withdrawal from the remaining bloc of 27.

Speaking on the transaction, which is expected to close during the second half of 2019, George Schindler, President and CEO, CGI, said, "CGI's offer to merge its operations with those of SCISYS is aligned to our Build and Buy strategy, providing opportunities to expand our industry depth in space, defense, government and media in the UK and Germany. SCISYS’ industry-leading expertise and IP-based services and solutions will provide an opportunity to globalise certain platforms utilising the broader CGI geographic footprint and client relationships.”

Tara McGeehan, CGI President of UK operations, added, "We look forward to welcoming SCISYS’ highly-skilled innovators to CGI, sharing and collaborating with a focus on the success of our clients.”