Cognicase said the acquisition will increase its business in the U.S. oil and gas market.
Applied Terravision provides e-business software and applications for the oil and gas sector. According to Cognicase, shareholders owning 30 percent of the Calgary-based company's outstanding shares have endorsed the deal.
Under the terms of the deal Cognicase has offered to pay 43 cents a share plus 0.105 Cognicase shares for each Applied Terravision share tendered to the offer, or 0.147574 Cognicase shares per Applied Terravision share with no cash component.
Applied Terravision has 39.4 million shares outstanding, making the offer worth about $1.53 per share, or a 61 per cent premium to Friday's closing price of 95 cents a share on the Canadian Venture Exchange.
Shareholders will vote on the offer at a special meeting, with the deal expected to close March 15.
In August Applied Terravision bought Ptarmigan Energy Services Inc. for $4.2 million in cash, stock and debt.
Privately-held Ptarmigan was Canada's largest independent provider of production, revenue and royalty accounting outsource and consulting services to the oil and gas industry.
