Satish Sanan's Clearwater, Fla.-based IMRglobal Corp. will merge with CGI Group of Montreal, Quebec, according to a release from IMRglobal. But the Feb. 22 edition of the St. Petersburg, Fla., Times called it a $438-million stock sale to the Canadian company.
CGI is among the leading information technology services providers in North America. IMRglobal is a leading global provider of end-to-end information technology solutions to Fortune 500 and Global 2000 companies.
Under the terms of the definitive agreement, IMRglobal shareholders will receive 1.5974 Class A subordinate shares of CGI for each share of IMRglobal Common Stock. Based on the average closing price of CGI Class A subordinate shares for the 25 trading days through Feb. 16, on the New York Stock Exchange, the exchange ratio represents an implied price of about $9.50 per IMRglobal share.
The combined organization will have approximately 13,000 employees in more than 60 offices in 24 countries.
Sanan, who entered the Thoroughbred racing and breeding business with a flourish several years ago, told the Times he will stay with the company. "My hope is I will continue to run the U.S. subsidiary and maybe the European subsidiary," he told the paper.
The newspaper said his role hasn't been determined. Sanan is required to retain at least 20% of his CGI holdings for two years.
The IMRglobal board of directors unanimously determined the merger is fair and in the best interests of the shareholders of the company. Sanan, who owns -- directly and indirectly -- 27.6% of the outstanding shares of IMRglobal, has agreed to support the transaction.
"I am very excited about the prospect of making my personal contribution to the further development of the company, and I look forward to the opportunities that lie ahead," Sanan said in a prepared statement that accompanied the release.