CGI Inc Stock Price, News & Analysis

CGI (TSX: GIB.A) (NYSE: GIB) has completed its acquisition of Novatec, a leading digital services company in Germany and Spain. Founded in 1996, Novatec specializes in business and IT consulting services, including cloud-based solutions, agile products, software development, and digital strategies.

The acquisition brings over 300 IT and consulting experts from eight German offices, primarily in the Stuttgart metro market and South-West region, as well as from Granada, Spain. Novatec's application performance management solutions will enhance CGI's intellectual property portfolio and support clients in accelerating digital innovation through AI technologies.

The merger aims to create additional value for clients in the automotive, manufacturing, and financial services industries, combining both companies' expertise in digital innovation and business transformation.

CGI (NYSE: GIB) has announced the pricing of US$650 million in 5-year senior unsecured notes, bearing an interest rate of 4.95% per annum. The company plans to enter a currency swap agreement to reduce the Canadian dollar equivalent borrowing cost to 3.7125% per annum.

The offering is expected to close around March 14, 2025, with net proceeds of approximately US$641.3 million after deducting fees and expenses. CGI intends to use the proceeds to repay existing debt and for general corporate purposes.

The notes will be offered to qualified institutional buyers in the United States under Rule 144A and internationally under Regulation S, as well as in Canada through private placement.

CGI (TSX: GIB.A) (NYSE: GIB) has achieved the Sustainable IT label - Level 2 certification across its operations in France, Luxembourg, Morocco, Romania, and Switzerland, becoming the first digital services company with over 5,000 employees to reach this milestone.

The certification, awarded by Institut du Numérique Responsable in partnership with the French Ministry of Ecological Transition and other organizations, recognizes CGI's commitment to sustainable digital practices. The company was assessed against 52 criteria across five key areas:

• Strategy and governance
• Supporting responsible digital strategy
• Lifecycle of digital services
• Extending responsible digital approach
• External levers of digital service companies

Notable achievements include training 9,000 employees in eco-design and collaborating with major customers like EDF in developing environmentally-friendly solutions. The Level 2 certification was awarded following a comprehensive audit by Baker Tilly, and CGI has established a three-year progress plan focusing on responsible design implementation.

CGI has completed its acquisition of BJSS, a leading UK-based technology and engineering consultancy. This strategic move aligns with CGI's goal to expand its consulting-led services and drive innovation in cloud, AI, data analytics, and software engineering for both commercial and public sector clients.

The acquisition brings 2,400 BJSS professionals into CGI's global network of 91,000 consultants, increasing CGI's UK workforce to over 8,500 employees. BJSS's team adds complementary skills and expertise that will enhance CGI's ability to deliver industry-leading technology solutions and advisory services.

This integration is expected to enable expanded service offerings and deeper client collaboration, particularly in the retail, financial services, healthcare, energy, and public sectors. According to Tara McGeehan, President of CGI UK & Australia, the combined expertise will strengthen CGI's capabilities to help clients navigate complex digital transformations, accelerate innovation, and achieve measurable outcomes aligned with their strategic goals.

CGI (TSX: GIB.A) (NYSE: GIB) has achieved Select partner program status from Databricks, enhancing its data analytics and AI capabilities. The company maintains over 100 Databricks-certified consultants across data engineering, machine learning, and data science disciplines.

This achievement builds on a five-year collaboration between CGI and Databricks, focusing on delivering scalable data solutions across various sectors including financial services, public sector healthcare, and retail. The partnership leverages the Databricks Data Intelligence Platform, which combines customer data with AI models customized to specific business needs.

CGI's current U.S. clients using Databricks solutions include a global healthcare payer, a leading energy company, and a major bank, with CGI supporting their data platform modernization and advanced analytics initiatives.

Volkswagen Group and CGI (TSX: GIB.A, NYSE: GIB) announce the deepening of their global collaboration through the launch of MARV1N, a new development unit for Group-wide digitalization projects. This initiative aims to strengthen Volkswagen's IT infrastructure and accelerate software development processes.

By 2026, Volkswagen plans to modernize its IT system landscape by replacing hundreds of legacy systems with more powerful, scalable solutions. The collaboration through MARV1N, a wholly-owned subsidiary of CGI Germany, will focus initially on Technical Development projects, particularly accelerating data-driven function development for new vehicle projects.

The partnership is expected to enable faster processes, reduce IT-related operating costs, and ensure knowledge retention within Volkswagen through dedicated teams working exclusively on Group projects. A key initiative includes developing a cross-company IT system to consolidate electrical/electronic architecture and software functions data, aimed at accelerating software updates and digital products development.

CGI (TSX: GIB.A) (NYSE: GIB) has extended its partnership with the City of Springfield, Illinois, to upgrade the city's enterprise resource planning (ERP) system using CGI Advantage®, a cloud-based solution designed specifically for government operations.

The upgrade will provide Springfield with improved user experience, real-time analytics, and embedded reporting capabilities. Key benefits include reduced risk, enhanced time and leave-tracking, streamlined procurement processes, and support for multi-agency solutions through cloud architecture. The modernization aims to improve accessibility, reduce training times, and eliminate manual processes across city departments.

Mayor Misty Buscher highlighted that the move to CGI's Advantage SaaS platform will enable continuous system improvements and innovations. The implementation is expected to boost workforce capacity and improve citywide services through standardized and strengthened business processes.

CGI (TSX: GIB.A) (NYSE: GIB) has been awarded the ACCA India Award 2024 for Excellence in Digital Transformation, recognizing their AI-powered solution CGI DigiOps. The award acknowledges CGI's contribution to sustainable business practices and stakeholder value creation.

CGI DigiOps integrates various intellectual property tools, including CGI SiteReliability360 and CGI ServiceInsight, along with accelerators, foundational models, and alliance services. The solution provides an AI-powered service delivery approach that combines application and infrastructure management to help clients accelerate transformation.

Currently implemented across various sectors including energy, utilities, and retail, CGI DigiOps delivers operational efficiencies, cost savings, faster decision-making, and enhanced end-user experiences through its insights-led digital operations approach.

CGI (NYSE: GIB) has announced an agreement to acquire Novatec, an IT services firm specializing in agile software engineering and digital consulting services. The acquisition, signed on January 29, 2025, will bring more than 300 IT experts from eight German offices and Granada, Spain, strengthening CGI's presence in the manufacturing and financial services sectors, particularly in the automotive industry.

Novatec, founded in 1996, provides digital strategies, cloud-based solutions, and digital product development services. The company's expertise in application performance management will complement CGI's existing solution portfolio, particularly in AI technologies. The transaction is expected to close in March 2025, subject to regulatory approvals.

The acquisition will give Novatec's clients access to CGI's global capabilities, network of delivery centers, and comprehensive services. CGI currently operates across 26 offices in Germany, implementing a proximity-based business model.