Ciber has filed for Chapter 11 bankruptcy protection. Capgemini is bidding to acquire substantially all of Ciber's assets in North America and India, the companies confirmed this morning.
Capgemini won't necessarily emerge as Ciber's next owner. In accordance with bankruptcy code, Capgemini will solicit third-party bids for the company. Among the potential suitors to watch: AMERI Holdings (a.k.a. Ameri100), an SAP partner that made an unsolicited bid for the business in March.
In the meantime, Ciber has lined up $45 million in financing, subject to bankruptcy court approval, to provide the company with liquidity to maintain its U.S. operations during the Chapter 11 process.
Ciber Chapter 11 Bankruptcy Filing: Selling Off Assets
Ciber, faced with heavy debt, has been exploring strategic alternatives for some or all of the business since October 2016. The company over the past two months sold its German and Denmark businesses to Allgeier; its Spain operations to ManpowerGroup; and its Infor practice to Infor.
In a prepared statement, Ciber CEO Michael Boustridge said,
"With the advice and support of outside advisors, we've explored multiple paths, including selling the Company outside the bankruptcy process, selling certain assets of the Company, and other transactions to restructure the balance sheet or raise capital, while also focusing on attempting to improve sales, reduce costs, and exit underperforming operations. After careful consideration of the alternatives available to maximize the value of the Company, it's become clear that the best path forward for the Company, its employees, customers and stakeholders is to accomplish a sale through the bankruptcy process."
Boustridge vowed to minimize disruption to customers, partners and employees during the Chapter 11 process.
