Capgemini To Acquire North American Operations Of Ciber For $50 Mln

(RTTNews) - Capgemini (CGEMY.PK, CAPP) and Ciber Inc. announced an agreement pursuant to which Capgemini will acquire the North American operations of Ciber, for a total price of $50 million. The transaction has been approved by Ciber's board and will be implemented through a sale of Ciber's assets under Chapter 11 of the United States bankruptcy code, for which Capgemini has agreed to act as the stalking horse acquirer.

The assets to be acquired include the majority of the North American business of Ciber, covering client-focused assets, employees and operations, with revenue of approximately $275 million. The acquisition will strengthen Capgemini's presence in the region with key Fortune 1000 clients in sectors such as Automotive, Telecom and Media. The deal will increase Capgemini's workforce by an estimated 2,000 consultants in the US and 1,000 in India.

Capgemini plans to carry out most of the integration process and turnaround action plan by the end of 2017, leading an accretion to Capgemini earnings per share as of the first half of 2018. The company continues to target a normalized EPS of close to 6.10 euros per share in 2017.

If the bankruptcy court approves Capgemini's stalking horse bid, Ciber may be required to hold an auction for these assets before Capgemini can consummate the acquisition. Consummation of the acquisition would then be subject to Capgemini being selected as the successful bidder in any such auction.