SGF Invests $30 Million in Logibec’s Development
Montréal, July 20, 2010 — Société générale de financement du Québec (SGF) announces a $30 million investment in connection with the acquisition of Logibec Group Informatique Ltd, one of Canada’s ten largest companies specializing in the development, marketing, integration and support of information systems dedicated to the health and social services sector.
SGF’s commitment includes a direct $10 million investment in OPE LGI Inc., the acquirer of Logibec and an entity managed by OMERS Private Equity Inc. In addition, SGF has accepted an invitation from National Bank to participate for $20 million in a $125 million senior secured term loan issued by a banking syndicate led by the National Bank of Canada.
“Through its participation in this project, SGF is not only able to ensure that Logibec’s head office remains in Québec, but is also able to support an expanding Québec-based company and be involved in the consolidation of the company’s position in the United States, where it currently controls 12% of the information systems market dedicated to the long-term care sector,” says Pierre Shedleur, SGF President and General Manager.
However, within the framework of this acquisition, SGF disposed of the common shares it acquired in Logibec in 2007, thereby yielding an annual return of approximately 12%.
Across Québec and Canada, Logibec offers solutions to all types of health and social service organizations, including hospital centers, community health centers and regional health authorities. Furthermore, through MDI Achieve, a wholly-owned subsidiary, Logibec is an eldercare sector leader in the United States, with over 7,000 centers and homes dedicated to the elderly.
A seasoned team of about 430 professionals enables Logibec to stand out in these markets. The company, whose head office is located in Montréal, also has offices in Québec City, Edmonton, St-Louis, Minneapolis and Dallas.
Société générale de financement du Québec (sgfqc.com), an industrial and financial holding company, has a mission to carry out economic development projects, particularly in the industrial sector, in cooperation with partners and in compliance with accepted profitability requirements and with the economic development policy of the Québec government. As part of its new mandate, SGF is authorized by the Québec government to go beyond its traditional role as an equity investor by offering complementary financial solutions, such as loans, debentures or preferred share investment.
Director, Marketing and Public Relations