CGI Group NewsWatch

CGI Group has completed its £2.022 billion acquisition of Logica plc. The firm has released its new slate of close to 20 global senior leaders, which includes just 4 former Logica executives. CGI executive, Tim Gregory, takes over the firm's UK operations as President. All senior non-operational leaders are former CGI executives. The combined company now has approximately 72,000 professionals serving clients in more than 40 countries worldwide, with pro forma annual revenues of around $10.4 billion (CDN). This Research Note includes 2 charts and offers MR perspective on the market, operational, staffing, leadership and financial risks faced by CGI in the acquisition of Logica, its much larger European rival in terms of revenues and staff. (1,255 words)...More

Logica's shareholders voted 99.54% in favor of CGI Group's cash offer of 105 pence at its General Meeting held in London on 16 July. Logica and CGI expect the transaction to be completed on 20 August 2012, subject to the sanction of the Court and the satisfaction or waiver of certain other conditions, including regulatory approvals. (480 words)...More

CGI Group has reached an agreement to acquire Logica. The transaction remains subject to certain closing conditions, including regulatory approvals, and is expected to be concluded by the end of September 2012. CGI believes the transaction will strengthen its capabilities across five key dimensions in its plan to become a global leader in IT and business process services, which include: People and culture; Client proximity with blended global delivery; End-to-end capabilities; Operational excellence; and Mission critical intellectual property. (800 words)...More

The liquidating trustee in the (former) BearingPoint bankruptcy, John DeGroote Services, has survived motions to dismiss the $1.88 billion civil suit for fiduciary irresponsibility. The suit was filed against the firm's then-CEO, Edwin Harbach, and 8 members of BearingPoint's board of directors at the time. The suits are filed against them personally, since they allegedly acted in bad faith and breached their fiduciary duties, eliminating liability exclusions that would have been covered by insurance or BearingPoint governance policies limiting liability. The breaches alleged by DeGroote forced BearingPoint's shareholders and creditors to file bankruptcy in February 2009, later liquidating for just $396 million in net proceeds, when the company had an aggregate value of $2.3 billion 19 months before. A former CFO that left after just 3 weeks on the job offers telling perspective on the alleged misconduct. Research Note includes case details and offers rejected from competitors and priv...More

Ernst & Young appoints Mark Weinberger as next Global CEO and Chairperson. L.E.K. names Stuart Jackson North America President; Appoints 6 new Partners. Huron appoints former Accenture executive as Managing Director and leader of Clinical Solutions practice. Huron promotes Gerri Birg, Sandra Dodds, Michael Gladson, Neera Gupta, Michael Kemper, Jason Moebius, Scott Pillittere and Joe Sneddon to Managing Director. ECS appoints George Wilson as President. PA Consulting names Dave Smith Group Technology Leader. Andrea Schaffell named Director of PA Shared Services and Outsourcing practice. KPMG appoints David Hansell Head of global Human Social Services practice. Aon Hewitt's Head of Investment Consulting, Andrew Tunningly, departs. (1,825 words)...More

MR - Korn/Ferry appoints Chuck Feltz as President of its Lominger products business. CSC CEO and Chairman, Michael Laphen, to retire. KPMG LLP Names Steven Hill Vice Chair, Strategic Investments. Sixty staff and 6 partners join BDO USA from Carneiro Chumney & Co. Cushman & Wakefield cuts staff and shifts focus from Dubai to Bahrain. CGI appoints George Schindler President of US operations and Ken Taylor as Vice-President, Cybersecurity. PwC names Dietmar Ostermann Global Automotive Advisory Leader. PwC appoints Eric Israel and Clinton Moloney as Managing Directors in Sustainability Business Solutions practice. Martin Steinbach appointed to lead Ernst& Young's IPO Center. BDO Consulting names Drew Olson to expand litigation and fraud investigation within Chicago Insurance practice. Celerant appoints Neil Eurick as Vice President within Metals and Mining practice. BearingPoint hires Rob Staples as Partner in UK Communications practice. Navigant appoints nine senior consulting...More

MR - Some firms are willing to negotiate location-based rating schemes for strategic clients. So what are the average differences in rates for work provided exclusively at the client site when compared to rates for the same work provided at the firm site? Monadnock Research recently concluded an analysis of location-based rating (LBR) from more than 30 consulting firms that proposed 56 separate LBR schedules. Our study included analysis of 242 rate structures from 153 large and very large consulting firms providing services to the U.S. public sector to find those 56 schemes. Of the 153 firms, discounts were offered by 34 firms, primarily by level of professional providing services exclusively from the client facility. The study included rating schemes for IT Consulting, Management Consulting, Financial and Business Advisory Services, Human Resources Consulting, and Marketing Consulting. Research Note includes 2 graphics and firm-level rate analysis for the 34 firms and 56 LBR schedul...More

MR - CGI Group and Stanley Inc. have entered into a definitive merger agreement for CGI to acquire Stanley for $37.50 per share, representing an enterprise value of around $1.07 billion. CGI Group is a provider of IT and business processing services and Stanley is a provider of IT services to U.S. defense, intelligence, and federal civilian government agencies. The purchase price represents a premium of 23.3 percent over Stanley's 30-day volume weighted average stock price. The transaction will be funded from CGI's cash on hand and existing credit facilities. The combined companies would have total revenues of approximately $4.5 billion, and 31,000 employees. (990 words)...More

MR - Roland Berger appoints nine new Partners and elevates four to the next partner level. Booz Allen Hamilton appoints five Executive Vice Presidents. McKinsey to hire up to 100 analysts for new Polish research facility. Alvarez & Marsal has promoted 18 professionals to the position of Managing Director. Navigant promotes nine professionals to Managing Director. Korn/Ferry appoints head of North America Real Estate Practice. U.S. GSA designates acting Administrator. CGI Group names Senior Vice-President for health industry practice. Reznick Group appoints former Ernst & Young tax partner as a principal and leader of real estate consulting practice (3,010 words)....More

MR - CSC signs IT services contract with Raytheon desktop, network and data center support. Baker Tilly Hungaria and Deloitte Consulting awarded HUF 60 million consulting and outsourcing contract by Hungarian National Development Agency. CACI International has been awarded $98 million in U.S. Army orders; $29 million contract to support financial management functions at the U.S. Department of Defense. Deloitte was appointed Joint Administrators in the sale of John Stephenson & Sons Ltd and Wharton Wade Wines Ltd to European Food Brokers. SAIC was awarded five task orders worth $189 million U.S. Department of Homeland Security to support its office of the CIO and a $160 Million contract by the Naval Sea Systems Command. CGI Group signs three-year application support services contract with Rio Tinto Alcan and $100 million Yellow Pages Group, Canada. CGI Federal signs $58 million U.S. Department of Housing and Urban Development Section 8 program....More

The US General Services Administration (GSA) is the world's largest consulting services procurement organization. This 500 page report provides consulting rate details for all professional levels and consulting categories for more that 125 of the largest providers of management and IT consulting services to U.S. Federal, State, and Local government clients. Purchase report: //www.monadnockresearch.net/products/item30.cfm...More

Accenture shifts responsibilities of ten senior executives to support future growth plans; Cuts 7 percent of its executive ranks. Keane names new President and CEO. Blackstone Group names Vice Chairman of Blackstone Advisory Services. Booz Allen makes appointments in civil aviation practice. CGI names former US EPA CIO as VP and Federal Energy and Environmental Industry Lead. Keane names new President and CEO. Wipro appoints President of Global Sales and Operations. Abt Associates elects new chairman. Deloitte introduces voluntary one and six-month sabbatical programs for US staff....More

(19 September 2008) KPMG LLP appoints partner in charge of diversity. CRA International appoints CIO and two new Vice Presidents to the firm's Chemicals & Petroleum and Transfer Pricing practices. Lee Hecht Harrison appoints head of leadership consulting practice. Deloitte announces strategic leadership group for anti-money laundering practices. Founder and former Chairman of Atos Origin joins CGI Group board. Options Group appoints new Chairman. DIVURGENT and appoints Vice President, Client Services. TietoEnator names new leadership team; Deputy CEO to leave the company....More

(23 July 2008) CGI Group has sold its Canadian business processing unit that provides claims adjusting and risk management services to Canadian property and casualty insurance firms, to the Shumka Group. The unit has approximately $70 million in annual revenue. Terms of the transaction, which is expected to close in early August, were not disclosed....More

(12 June 2008) AT&T has honored CGI Group, Accenture, Affiliated Computer Services (ACS), and Convergys for their commitment to excellence over the past year with outstanding supplier awards. Each of the firms was recognized for contributions in the area of teamwork....More

14 May 2008 - Start-up property insurance carrier Magnolia Insurance Company has signed a $114 million agreement with CGI Group Inc. The ten-year contract calls for CGI to provide Magnolia with complete back-office services, including policy administration, billing and accounting, claims administration, statistical reporting, and statutory accounting....More