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Consulting firm CGI sees more merger opportunities in U.S. with DOGE

Jan 29, 2025 - financialpost.com
CGI Inc., a major Canadian tech-services firm, is actively pursuing mergers and acquisitions, with recent deals including the purchase of UK-based BJSS Ltd. and St. Louis-based Daugherty Business Solutions LLC. The company plans to add over 3,500 consultants to its global workforce of 91,000. CGI's CEO, Francois Boulanger, highlighted the company's $1.8 billion in cash reserves, which positions it well for further acquisitions, despite market pressures and competition from private equity firms. CGI counts the U.S. government as a significant client, serving nearly every cabinet-level federal agency and military branch. The firm sees potential growth opportunities with the newly established Department of Government Efficiency, led by Elon Musk under U.S. President Donald Trump, which focuses on cost-cutting and system automation.

Boulanger noted that the current economic climate is prompting some companies to consider selling, creating acquisition opportunities for CGI. The firm is not considering layoffs, contrasting with trends in the tech sector, and is focused on helping clients achieve cost savings through automation and AI. CGI's recent acquisitions include Aeyon in the U.S. and the credit union business of Celero in Canada. The company is optimistic about its future growth prospects, particularly in the U.S. market, as it continues to expand its capabilities and client base.

Key takeaways:

  • CGI Inc. is actively pursuing mergers and acquisitions, recently agreeing to buy UK-based BJSS Ltd. and previously acquiring Daugherty Business Solutions LLC.
  • The company sees significant opportunities in the U.S., particularly with the Department of Government Efficiency led by Elon Musk, which aligns with CGI's expertise in system automations.
  • CGI plans to add over 3,500 consultants to its workforce, which currently stands at 91,000 globally, as part of its expansion strategy.
  • CGI's CEO, Francois Boulanger, highlighted that market pressures are encouraging potential acquisition targets to consider selling, despite competition from private equity firms.
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