Acquisition CTG by Cegeka finally finalized for 159 million euros

Acquisition CTG by Cegeka finally finalized for 159 million euros

The acquisition of the American Computer Task Group (CTG) by Belgian Cegeka has finally been approved. Cegeka managed to get the required majority stake and various regulators also gave the necessary approvals.

Cegeka’s acquisition of the U.S.-listed CTG took quite some time. For the takeover, the Belgian IT service provider had to acquire a majority stake of 66 percent of CTG shares.

159 million euros

This acquisition took longer than expected due to several factors. For example, while the IT service provider previously stated that it had acquired 76.5 percent of the shares, it later turned out to be only about 56.9 percent. This fallback was the result of several existing shareholders no longer wishing to sell their shares. In addition, it took a long time for certain regulators to form a decision around the acquisition.

Now, Cegeka says it can officially acquire CTG. The Belgian IT services provider has now managed to secure a majority stake of 73.79 percent of the shares. Cegeka is paying 159 million euros ($172 million) for this.

Further expansion in the US and Europe

CTG is an IT service provider that focuses primarily on digital transition processes. Its focus is on healthcare, financial services, manufacturing and government. With the acquisition, Cegeka wants to expand its footprint. The acquisition further expands the Belgian IT service provider’s presence in the U.S., as well as in Europe. In addition, the IT service provider also gains offshore capabilities in India through the acquisition.

Also read: Cegeka acquires CTG for IT-assistance during digital transformation