Welcome to our dedicated page for CGI news (Ticker: GIB), a resource for investors and traders seeking the latest updates and insights on CGI stock.
CGI Inc. reports developments in IT and business consulting services across consulting, systems integration, managed IT, business process services and intellectual property solutions. News about CGI commonly covers quarterly results, bookings and backlog, client demand for modernization of mission-critical technology environments, and capital actions such as issuer bids.
Company updates also address AI-enabled services, sovereign cloud and data platforms, SAP operations certifications, and strategic partnerships in sectors such as government, healthcare, critical infrastructure, financial services, manufacturing and utilities. CGI’s model combines local client relationships with a global delivery network across North America, Europe and other markets.
CGI (TSX: GIB.A, NYSE: GIB) has announced a private offering of senior unsecured notes, aiming to raise approximately US$1 billion. The offering will involve two tranches with varying maturities and interest rates. Proceeds will be utilized to repay debt under a term loan facility maturing in March 2023. The notes will be available to qualified institutional buyers in the United States under Rule 144A and in Canada under private placement exemptions. This offering is not registered under the Securities Act and is subject to market conditions.
CGI (NYSE: GIB) has secured a $34.4 million contract from the U.S. Department of Health and Human Services to implement an API Gateway at the Centers for Medicare and Medicaid Services (CMS). This five-year project is designed to enhance data sharing and combat fraud in Medicare and Medicaid programs. The implementation aims to streamline operations, potentially saving CMS and taxpayers millions. CGI's recent contracts also include a $33 million support contract for the Medicare Appeals System and a $100 million redesign task order for the CMS Provider Enrollment System.
CGI has renewed its payroll services alliance with Desjardins in a 10-year agreement valued at over CA$500 million. This long-standing partnership, in place since 1997, will enhance Desjardins' payroll service center, ensuring business continuity, IT infrastructure, and customer support. The collaboration aims to provide high-quality and secure services to Desjardins' 378,000 business clients, supporting their digitization and growth. CGI, founded in 1976, is among the largest independent IT consulting firms with annual revenue of CA$12.16 billion.
CGI Reports Strong Q3-F2021 Results
CGI announced remarkable results for the third quarter of fiscal 2021, reporting revenue of $3.02 billion, reflecting a constant currency growth of 3.5%. Net earnings surged by 29.7% to $338.5 million, with diluted EPS rising 36% to $1.36. Bookings increased by 28% to $3.63 billion, yielding a book-to-bill ratio of 120%. The company also maintained a backlog of $23.34 billion, bolstered by strong cash from operations amounting to $418.9 million.
CGI is set to release its third quarter fiscal year 2021 results on July 28, 2021, before market opening. The conference call will commence at 9:00 a.m. (EDT), featuring insights from CEO George D. Schindler and CFO François Boulanger. This quarter ends on June 30, 2021. In the previous fiscal year, CGI reported revenues of C$12.16 billion. For further details, a live webcast will be available on their IR section.
CGI has secured a $150 million IT Services Indefinite Delivery/Indefinite Quantity (IDIQ) contract from the Library of Congress, effective over five years. The contract aims to enhance user experience and improve decision-making through advanced tools and technology. CGI will leverage its extensive experience in federal projects to provide end-to-end IT lifecycle services, significantly boosting collaboration and transparency within the Library. This partnership builds on over 20 years of collaborative efforts between CGI and the Library, focusing on digital transformation and cloud-based solutions.
CGI (TSX: GIB.A, NYSE: GIB) has signed a full managed IT services contract with Nexelis, a leading life sciences firm. This partnership aims to enhance Nexelis's IT infrastructure and support its rapid growth through a comprehensive three-year IT strategy. Key priorities include upgrading Infrastructure Managed Services (IMS) and implementing a Laboratory Information Management System (LIMS). CGI's expertise in IT solutions will enable Nexelis to focus on scientific advancements while enhancing operational efficiency and competitive edge in the healthcare sector.
CGI (NYSE: GIB) (TSX: GIB.A) announced the appointment of Frank Witter to its Board of Directors. Witter, a former executive at Volkswagen, served as CEO of Volkswagen Financial Services AG from 2008 to 2015 and later as CFO for the Volkswagen Group until his recent retirement. His extensive experience in finance and the automotive sector is expected to provide valuable insights as CGI aims to expand globally. Witter also holds a recent supervisory position at Deutsche Bank AG and has a business degree from the University of Hanover in Germany.
On June 1, 2021, CGI (NYSE: GIB) announced a five-year contract extension with Shell, valued at over CAD$200 million. This deal aims to enhance Shell's Fleet Solutions business by modernizing its mobility management and fuel payments platform, which processes over 250 million transactions annually. CGI will also assist Shell in developing innovative services and adapting its IT strategy to the evolving energy market. This partnership reflects CGI's long-term collaboration with Shell, showcasing confidence in CGI's consultancy and service delivery.
CGI (NYSE: GIB) has been awarded a 10-year contract by the State of Michigan to enhance its SIGMA ERP platform, leveraging CGI Advantage ERP cloud technology. This transformation aims to improve user experience, data-driven decision-making, and reduce total ownership costs. Currently, SIGMA processes over 600,000 payments monthly, totaling $5.2 billion, and supports nearly 50,000 public employees and 200,000 vendors. The agreement emphasizes CGI's expertise in public sector innovation and the ongoing digital transformation of Michigan's financial and procurement systems.