CGI (NYSE: GIB) (TSX: GIB.A) announces today that it is acquiring Cognicase Management Consulting (CMC), a leading provider of technology and management consulting services and solutions for over 25 years, primarily in the Spanish market.
The acquisition will deepen CGI’s footprint in Spain and will strengthen the company’s client-proximity model. CMC will bring CGI increased capacity to better serve its clients and help them accelerate their digitization. CMC’s proven industry expertise and solutions complement CGI’s end-to-end services, ranging from comprehensive consulting capabilities to systems integration and managed IT services.
Founded in 1993, CMC delivers high-value digital services to a majority of the IBEX 35’s companies and serves large clients across all industries. With approximately 1,500 highly skilled professionals, CMC operates through a strong metro market footprint supported by delivery centers serving clients in Spain, Italy, Portugal, Colombia and Mexico. Over the years, CMC has served as a digital partner of choice through its end-to-end services portfolio and its solid ecosystem of technology partners.
"We are looking forward to joining forces with CMC in helping our clients accelerate their digitization and driving even greater business value from our united end-to-end capabilities," said George D. Schindler, President and Chief Executive Officer at CGI. "CMC’s services, solutions and highly skilled employees will enable us to significantly strengthen our services portfolio and capabilities in Spain."
"CMC and CGI share a common corporate culture and core values, including a strong commitment to talent and innovation, and to excellence in execution," said Jean-Michel Baticle, President and Chief Operating Officer at CGI. " I want to warmly welcome CMC’s consultants and other professionals to the CGI community."
“CMC is tremendously proud to have been chosen by such a renowned industry leader as CGI to continue to grow its business,” said Jaime Hortelano, Chairman of CMC. “By joining forces, CGI becomes one of the strongest players within our markets, with an excellent, highly competitive team that will continue to provide distinctive value to our clients. I am excited to be part of CGI’s leadership team.”
Foreign investment approval by the Spanish authorities has been received for the acquisition and the transaction is on track to formally close by the end of the month.
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 78,000 consultants and other 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 2020 reported revenue is C$12.16 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.
Forward-looking information and statements
This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws.
Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof.
These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements.
These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, external risks (such as pandemics) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to attract and retain qualified employees, to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws, our ability to negotiate favourable contractual terms, to deliver our services and to collect receivables, and the reputational and financial risks attendant to cybersecurity breaches and other incidents; as well as other risks identified or incorporated by reference in this press release, in CGI's annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). For a discussion of risks in response to the coronavirus (COVID-19) pandemic, see Pandemic Risks in section 10.1.1. of our annual and quarterly MD&A.
Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements.
Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled "Risk Environment" of CGI's annual and quarterly MD&A, which is incorporated by reference in this cautionary statement.
We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual and quarterly MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.
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