StockNews.AI
GIB
StockNews.AI
201 days

CGI enters into an agreement for the acquisition of Novatec, a leading digital services firm in Germany and Spain

1. CGI acquires Novatec to boost automotive and financial services presence in Germany. 2. Over 300 Novatec experts expected to enhance CGI's digital capabilities. 3. The acquisition supports CGI's expansion into key sectors like e-mobility. 4. Expected closing of the deal is set for March 2025, pending approvals. 5. Novatec's solutions will complement CGI's offerings in AI and digital innovation.

M&A
+5.33%Current Return
VS
+1.21%S&P 500
$114.5401/30 06:32 AM EDTEvent Start
$120.6401/31 01:14 PM EDTLatest Updated
6m saved
Insight
Article

FAQ

Why Bullish?

Acquisition leads to expansion and enhances CGI's capabilities, historically supporting stock value.

How important is it?

This acquisition aligns with CGI's strategy for growth in lucrative sectors and is likely to drive future revenue.

Why Long Term?

The integration of Novatec's services will take time to manifest in growth metrics.

Related Companies

GIBGIB.A
Acquisition will strengthen CGI's presence in the automotive, manufacturing and financial services sectors in Southern Germany, and will expand its presence in Spain Stock Market SymbolsGIB (NYSE)GIB.A (TSX)www.cgi.com/newsroom , /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, today announced that its wholly-owned limited partnership, CGI Deutschland B.V. & Co. KG, has signed an agreement to acquire Novatec, an IT services firm specialized in agile software engineering, digital products and strategic business & IT consulting services. More than 300 highly skilled IT and consulting experts from across Novatec's eight offices in Germany, with a strong presence in the Stuttgart metro market and the South-West region, as well as from Granada, Spain, will join CGI and strengthen its footprint in the manufacturing and financial services sectors, with a special focus on the automotive industry and e-mobility. The purchase agreement was signed on January 29, 2025. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in March 2025. Founded in 1996, Novatec serves enterprise clients through a wide range of IT consulting and software development services, including digital strategies, cloud-based solutions and digital product development. Novatec's product solutions in application performance management will complement CGI's existing solution portfolio that enables clients to accelerate digital innovation through new technologies such as AI. "By combining the expertise of Novatec and CGI, we will drive additional business value for our clients in the automotive, manufacturing, and financial services industries," said Ralf Bauer, CGI President of Germany operations. "Both companies have an excellent reputation for providing deep industry insight and technology expertise as well as a proven track record of excellence in execution -- all of which enable us to partner with clients to help them achieve trusted business outcomes." CGI's acquisition of Novatec will enable Novatec clients to gain access to CGI's global capabilities, network of delivery centers, and breadth of end-to-end services and solutions. Both companies are strongly guided by an ownership-driven mentality of outcome-oriented intrapreneurship, innovation and accountability in the local communities where employees live and work. "With CGI, we found a company aligned with our own principles and culture, which was highly important for us in taking the next step forward," said Michael Schuchart, Novatec Founder and Managing Director. "We are glad to see an excellent match between both companies based on the local proximity model of CGI and a wide range of opportunities for us to expand our joint portfolio for the benefit of our clients." In Germany, CGI has operations across 26 offices to enable consultants to partner with clients through a proximity-based model while drawing on the support of the company's broad international presence and wide range of services to deliver value both locally and globally. About CGI Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 91,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2024 reported revenue is CA$14.68 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com. SOURCE CGI Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Related News