CGI Group Inc. (CGI) announced it will acquired certain assets of Fort Worth-based INSpire Insurance Solutions Inc. (INSpire) for US$5.4 million (CDN$8.5 million) in cash. INSpire has revenues of US$26 million (CDN $41 million).
The acquisition is expected to close on November 29, 2002 and will be accretive to Canada-based CGI’s earnings immediately.
INSpire provides claims and policy administration outsourcing services as well as software and consulting services for property and casualty insurance carriers. INSpire’s clients include insurers such as Midwest Family, Onebeacon and Arrowhead. As part of the acquisition, some 265 professionals located in five offices in the U. S. will be joining CGI.
Clients within the financial services sectors account for 40 percent of CGI’s revenue. Some 3,000 CGI professionals are dedicated to insurance clientele, which include Allianz, Sun Life and Premier Insurance. Revenue from business process outsourcing services represents approximately 16 percent of CGI’s total revenue.
Topics Mergers & Acquisitions
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