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Acquisitions focus on high-growth commercial markets with local presence in Atlanta, Birmingham, Charlotte, Chattanooga, Denver and Nashville
FAIRFAX, VA, April 28, 2017 /PRNewswire/ - CGI (NYSE: GIB) (TSX: GIB.A) today announced the acquisition of two U.S.-based high-end consulting firms specialized in helping clients address technology and transformation challenges with practical innovation. The firms' footprint and capabilities help to further strengthen CGI's global capabilities across several in-demand digital transformation areas.
Building on a portfolio of commercial clients, Birmingham, Alabama-based CTS and Denver, Colorado-based ECS Team bring robust strategic consulting, cloud, data analytics and digital transformation capabilities and more than 450 highly-skilled professionals to strengthen CGI's commercial footprint across key U.S. metropolitan areas, including Atlanta, Birmingham, Charlotte, Chattanooga, Denver and Nashville. Additionally, CGI adds to its robust global and U.S. onshore delivery model with a new domestic delivery center in Mobile, Alabama.
"These acquisitions align with CGI's plan to profitably double the company in five to seven years through a combination of acquisitions and organic growth," said George D. Schindler, CGI President and Chief Executive Officer. "In turn, CGI brings scale for the clients served by CTS and ECS Team through access to our global and onshore delivery network, robust intellectual property portfolio and managed services. We will continue to implement an established build-and-buy strategy that adds to our strength in the U.S. and around the globe."
In the U.S., CGI has 11,000 talented professionals located in 80 cities within 33 states, and operates under a deep commitment of working with clients, governments, academic institutions and other organizations to help transform the communities in which we live and work into economic, technical and educational hubs. The addition of CTS and ECS Team helps further that commitment, providing CGI's clients, professionals, shareholders and communities with a long-term partner dedicated to their success.
"CTS and ECS Team both bring to CGI the expertise of highly regarded regional innovators with strong leadership and deep, long-term client relationships," said David L. Henderson, CGI President of U.S. operations. "By merging with the global reach and resources of CGI, the result for clients is a powerful combination that is expected to accelerate profitable growth."
As a cash transaction, the acquisition of CTS was completed effective April 19, 2017. As a cash transaction, the acquisition of ECS Team remains subject to obtaining regulatory approvals and satisfaction or waiver of other closing conditions and is expected to be completed on or around May 12, 2017.
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 68,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as 150 IP-based services and solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933 and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are "forward-looking information" within the meaning of Canadian securities laws. These statements and this information represent CGI's intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified employees; market competition in the rapidly evolving information technology industry; general economic and business conditions; foreign exchange and other risks identified or incorporated by reference in this press release, in CGI's annual and/or quarterly Management's Discussion and Analysis and in other public disclosure documents filed with the Canadian securities regulatory authorities (on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov), as well as assumptions regarding the foregoing. The words "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.
SOURCE CGI Group Inc.