CGI Latest Tuck-in Acquisition Brings M&A to $1 Billion in Last Four Months, Says RBC

Important legal information about the email you will be sending. By using this service, you agree to input your real email address and only send it to people you know. It is a violation of law in some jurisdictions to falsely identify yourself in an email. All information you provide will be used by Fidelity solely for the purpose of sending the email on your behalf. The subject line of the email you send will be "Fidelity.com: "

CGI Latest Tuck-in Acquisition Brings M&A to $1 Billion in Last Four Months, Says RBC

, MT Newswires - 12:45 PM ET 3/26/2025 Company News

12:45 PM EDT, 03/26/2025 (MT Newswires) -- CGI has acquired Momentum Technologies, a Quebec City-based IT consulting services firm specializing in data analytics and business intelligence with 250 employees. Financial details were not disclosed.

According to RBC, Momentum Consulting should strengthen CGI's footprint in Quebec City. Analyst Paul Treiber estimates that Momentum generates ~$43 million annual revenue, assuming a similar level of revenue generated per employee as CGI's previous acquisition in Quebec, for an estimated purchase price of ~$44 million.

Momentum is CGI's fourth acquisition of FY25 and marks the company's third acquisition in the fiscal second quarter. FY 2025 capital deployed on acquisitions is tracking to a 10+ year high, notes RBC.

In the last four months, RBC estimates CGI has deployed $983 million on four acquisitions, compared with the $385 million deployed on three acquisitions in FY24. "Year-to-date in FY25, CGI has already reached a 10+ year high on annual capital deployed on acquisitions (highest since ~$3B on Logica in 2012)," Treiber adds.

CGI is rated Outperform, with a $192 target.

Price: 143.42, Change: -1.06, Percent Change: -0.73

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.