24th May 2011 07:00
24 May 2011
Logica acquires Grupo Gesfor to strengthen support for European clients across Spain and LATAM
Logica, a leading European business and technology service provider, is today announcing the acquisition of Grupo Gesfor, a privately held Spanish consulting and professional services company founded in 1985. The acquisition will be financed out of existing debt facilities and is expected to be earnings accretive in 2012.
Around 1,200 Grupo Gesfor employees with strengths in areas such as security, business intelligence, HR consulting and enterprise content management will join Logica. Grupo Gesfor's presence in Spain and operations across Latin America will support our wider client base, particularly our many European clients already operating in these markets, and complement our existing presence in Iberia.
Logica will bring its strong capabilities in outsourcing and business consulting as well as global delivery to Grupo Gesfor's blue chip Spanish clients, which include BBVA, Santander and El Corte Ingl©s.
The Grupo Gesfor business to be acquired had revenue of €64 million (c. £55 million) in the year ended 31 December 2010. This addition will reinforce Iberia's position as the largest geography within the International cluster.
The total consideration is expected to be up to €31.5 million (c. £25 million) of which €24 million (c. £19 million) will be paid in cash upon completion. Based on 2010 revenue, this would represent EV/sales of around 0.6x with assumed net debt of around £7 million.
Andy Green, Chief Executive Officer of Logica, said:
"The Spanish market is home to a number of major multinational companies and an important market for many of our existing European clients. Acquiring Grupo Gesfor supports our client intimacy strategy by extending our capabilities and presence to support clients as they grow in Spain and Latin America. This is a good time to be investing for the longer term."
Jos© Manuel de Riva Zorrilla, Founder President of Grupo Gesfor, said:
"Logica's strong capabilities around the world will bring benefits to our clients and will offer exciting career prospects for our employees. Logica has significant experience in developing a great local business like Grupo Gesfor and growing with its clients."
For further information
Logica Investor relations:Karen Keyes/Jose Cano +44 (0) 20 7446 1338/+44 (0) 7801 723 682Logica Media relations:Carolyn Esser +44 (0) 7841 602 391
Brunswick:
Tom Buchanan +44 (0) 20 7404 5959
Notes to editors
Logica's International cluster represented c.9% of Group revenue and had margins of 9.0% in 2010.
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