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

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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 mergers-and-acquisitions

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

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