CGI acquires UAB for $53 million

Business IT solutions provider CGI Group Inc. (TSX: GIB.A) has signed an agreement to acquire claims specialist Underwriters Adjustment Bureau Ltd. (UAB) for $53 million. The deal is expected to close by the beginning of next year.UAB generates about $100 million in annual revenue. A statement released by CGI says the deal will benefit the company’s earnings for the 2003 financial year. “CGI will be gaining a large base of extremely well known industry experts with deep client relationships,” comments CGI president Michael Roach. UAB president Serge LaPalme notes that the deal will enhance the company’s competitiveness on the technology front. “With our long insurance history coupled with our firmly established relationship with CGI, the fit was natural. We see how the industry is rapidly evolving and know that keeping our technology leading-edge is what CGI is well positioned to do.”