CGI Group Inc [GIB] Canada’s largest indigenous IT services and outsourcing company, has sold business assets worth $30.6 million annually to Montreal based IT services company Nexxlink [NTI.TO], for $16 million in cash and shares.
The sale covers ERP software and associated clients that were originally obtained by CGI through its January 2003 acquisition of rival Cognicase for $202.9 million. CGI will acquire a 32% stake in Nexxlink as part of the deal, becoming the company’s biggest shareholder. The two companies have also entered into a long-term business partnership.
The deal will involve 375 CGI employees and more than 500 clients, including 70% of municipalities in Quebec, moving to Nexxlink, doubling the size of the company.
CGI announced that it would divest about 10% to 12% of Cognicase’s business after it acquired it earlier this year. Murphy said that this sale represents around 9% of the total planned, and that CGI was now in the final phases of the divestment. She added that the remaining divestment could result in another sale of assets.
This article was based on material originally published by ComputerWire.