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Posted by Bill Martorelli on May 31, 2012
CGI’s plan to acquire Logica for approximately $2.6 billion, amounting to the combination of two distinctly regional entities into a single “global” provider, offers further proof of a consolidating globalized service industry — as if we needed any after the series of service industry consolidations during the last few years. This acquisition makes sense for several reasons:
Clients of both companies should not expect to see much disruption, since both companies operate in different markets, and the global and competitive benefits are likely to result in additional benefits for customers (such as reinforced capabilities in ADM, testing, ERP package implementation, and IT infrastructure management, among others, although these benefits will take time in consolidating). However, it is still early and execution details are still forthcoming. For now, we’re watching this acquisition with interest.
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