Logica takeover agreed

IT services company Logica, a major UK graduate recruiter, has agreed to a takeover.

The buyer is CGI, also a major player in the IT services sector, employing 31,000 people at 125 offices across North America, Europe, India and Australia, including a head office in Canada.

Providing the deal goes ahead, it would create a company of 72,000, operating in 43 countries, and in a strong position to compete against global giants in the IT services field. However, it’s possible that a counter-bid for Logica may emerge.

Logica employs around 5,500 people in the UK. It’s likely that the takeover would lead to job cuts at its head office in Reading; however, it could be the boost the company needs to recover from last year’s profit slump. Logica chairman David Tyler commented: ‘Given the very limited geographic overlap and CGI’s strong reputation for successful integration, we believe this transaction will offer great opportunities.’

Logica currently looks to recruit around 240 people a year onto its 18-month graduate scheme, a figure that has increased rapidly over the past year.

Source: Targetjobs.co.uk, Thursday 31st May 2012