CGI Holding Company will acquire WebCapades, which is based in Clearwater, FL, for stock and cash. CGI was incorporated in 1987, and was formerly known as North Star Petroleum, Inc. From 1993 until 1997, CGI had essentially no operations until it was taken over, in a merger, by a group led by Mr. John Giura of Oak Park, Illinois.
WebCapades produced revenues of $3.26 million in the first half of 2004 with a pre-tax profit of $1.53 million. CGI said the acquisition should add between 20-25 cents a share to its earnings. Scott Mitchell will assume the duties of Cherish.com. Mitchell is a former chief technology officer of the Home Shopping Network and Tunes.com. As part of the deal, CGI issued just over 2 million shares of stock at $2.05 per share to raise capital.
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