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.