Logica, a leading European business and technology service provider, has announced the acquisition of Grupo Gesfor, a privately held Spanish consulting and professional services company founded in 1985. The acquisition will be financed out of existing debt facilities and is expected to be earnings accretive in 2012.

Around 1,200 Grupo Gesfor employees with strengths in areas such as security, business intelligence, HR consulting and enterprise content management will join Logica. Grupo Gesfor’s presence in Spain and operations across Latin America will support our wider client base, particularly our many European clients already operating in these markets, and complement our existing presence in Iberia.

The Grupo Gesfor business to be acquired had revenue of €64 million (c. £55 million) in the year ended 31 December 2010.

The total consideration is expected to be up to €31.5 million (c. £25 million) of which €24 million (c. £19 million) will be paid in cash upon completion. Based on 2010 revenue, this would represent EV/sales of around 0.6x with assumed net debt of around £7 million.

Andy Green, Chief Executive Officer of Logica, said:

“The Spanish market is home to a number of major multinational companies and an important market for many of our existing European clients. Acquiring Grupo Gesfor supports our client intimacy strategy by extending our capabilities and presence to support clients as they grow in Spain and Latin America. This is a good time to be investing for the longer term.”