CGI acquires Celero';s business serving credit union clients across Canada
CGI (NYSE: GIB) has acquired Celero's credit union business, which serves over 90 credit unions across Canada. This acquisition includes master services agreements covering managed services, core banking, digital banking, and IT services. The acquisition complements CGI's existing banking services and strengthens its position in the Canadian credit union sector.
More than 150 Celero employees will join CGI, ensuring continuity and enhancing professional development opportunities. The deal also establishes new partnerships with Credit Union Central of Manitoba, Alberta Central, and SaskCentral. This move aligns with CGI's strategy of profitable growth and aims to foster future organic expansion.
- CGI enhances its managed service offerings to over 90 credit unions across Canada.
- More than 150 Celero employees will join CGI, improving service continuity and professional development.
- New partnerships established with Credit Union Central of Manitoba, Alberta Central, and SaskCentral.
- Acquisition aligns with CGI's strategy of profitable growth and aims to foster future organic expansion.
- Enhancement of CGI's core and digital banking solutions in the Canadian credit union sector.
- None.
Insights
CGI's acquisition of Celero's credit union business is a strategic move, enhancing CGI's core banking services and digital banking solutions across Canada. The acquisition means CGI will now serve more than 90 credit unions nationwide, a significant expansion from its previous footprint. For investors, this move aligns with CGI's build and buy profitable growth strategy, potentially leading to increased revenue streams and market share in the Canadian financial services sector.
Financially, integrating Celero's business could yield cost efficiencies and leverage economies of scale. Additionally, the addition of over 150 Celero employees should help maintain and potentially improve service quality, fostering client retention and satisfaction. However, the integration costs and potential initial disruptions are factors to watch for in the short term. Long-term, the acquisition could position CGI as a leading player in the digital transformation of the credit union sector in Canada.
From a market perspective, this acquisition allows CGI to deepen its presence in an important and underserved segment of the Canadian financial market: credit unions. Credit unions often require specialized IT solutions tailored to their unique member-focused operations and CGI's expanded offerings could fill this need effectively. By enhancing its portfolio with Celero's expertise, CGI is well-placed to innovate and grow within this sector, potentially unveiling new product lines and services that cater specifically to credit unions.
Moreover, forming partnerships with key organizations like Credit Union Central of Manitoba, Alberta Central and SaskCentral can provide strategic alliances that bolster CGI's credibility and market penetration. The acquisition supports a trend where large IT service firms are increasingly focusing on niche markets to drive growth, which can yield long-term benefits through focused and tailored service offerings.
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Acquisition expands CGI's managed service offerings to more than 90 credit unions nationwide
Under the agreement, CGI acquires the managed services business with more than 90 credit unions and creates new partnerships with Credit Union Central of
"We extend a warm welcome to Celero's team and the valued banking expertise each person brings to clients and now to CGI," says Michael Godin, President,
"CGI is the ideal IT services firm to continue the legacy of outstanding service Celero has established," says Curtis Wennberg, CEO, CUCM and Chair of Celero. "We believe this transaction will provide a great path forward for the credit union system overall as well as for Celero's employees. Combining Celero's expert knowledge of credit unions' needs with CGI's global portfolio of services and solutions will create new opportunities for growth and innovation in the credit union system."
As a result of this transaction, CGI will enhance and expand its services to credit unions. CGI has been serving Canadian credit unions with a range of innovative digital offerings, including core and online banking solutions and professional services, for nearly 30 years.
About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,000 consultants and 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 2023 reported revenue is CA
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
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, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability 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 and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favorable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions by 2030, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and the discontinuation of major interest rate benchmarks and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the
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 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 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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SOURCE CGI Inc.
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