Canadian technology services provider CGI Group [GIB] recently said it has agreed to acquire Britain’s Logica for $2.6 billion in cash in a deal that would expand its capabilities and global footprint.

CGI, which offers a range of information technology solutions and services, said the deal will give it a significant presence throughout the Americas, Europe and Asia. The company also said the pending acquisition will give it the ability to cover the entire customer services supply chain, further enhance its talent pool, and open its business to more growth and profit opportunities.

If the merger is approved, CGI would have annual sales of about $10.1 billion and have 72,000 employees in 43 countries. GGI had $4.2 billion in sales in its last fiscal year.

Similar to CGI, Logica provides a range of business and technology services to a broad range of clients, including the security and defense sectors as well as commercial markets.

“This announcement is consistent with our profitable growth strategy and with our belief that the global consolidation of our industry is both necessary and inevitable,” Michael Roach, CGI’s president and CEO, said in a statement. “It further underscores our ongoing commitment to support our clients as they expand their businesses locally and globally. In addition to operational breadth and depth, the combined business will have critical mass and key blue chip client relationships.”

Logica provides services to the United Kingdoms’ Ministry of Defence, and Justice and Home Affairs, the European Commission, and a range of international companies in the automotive, telecommunications, financial and telecommunications industries.

The deal terms, $1.62 for each share of Logica’s stock, represent a 60 percent premium to Logica’s closing price on the London Stock Exchange on May 30 and a 33 percent premium to the average share price over the six-month period to May 30. CGI said the deal would be immediately accretive to earnings, excluding transaction and integration costs, and that it would realize about $193 million in annual cost savings synergies by the end of the third year following the transaction.

CGI would also be assuming about $497.1 million in debt if the deal is approved. Subject to approval by regulatory authorities and Logica’s shareholders, CGI expects the deal to close by the end of September.

Logica’s financial advisers on the deal are Rothschild, Bank of America and Deutsche Bank.