CGI enters into an agreement for the acquisition of Novatec, a leading digital services firm in Germany and Spain

Rhea-AI Summary

CGI (NYSE: GIB) has announced an agreement to acquire Novatec, an IT services firm specializing in agile software engineering and digital consulting services. The acquisition, signed on January 29, 2025, will bring more than 300 IT experts from eight German offices and Granada, Spain, strengthening CGI's presence in the manufacturing and financial services sectors, particularly in the automotive industry.

Novatec, founded in 1996, provides digital strategies, cloud-based solutions, and digital product development services. The company's expertise in application performance management will complement CGI's existing solution portfolio, particularly in AI technologies. The transaction is expected to close in March 2025, subject to regulatory approvals.

The acquisition will give Novatec's clients access to CGI's global capabilities, network of delivery centers, and comprehensive services. CGI currently operates across 26 offices in Germany, implementing a proximity-based business model.

Positive

• Acquisition adds 300+ skilled IT and consulting experts to CGI's workforce
• Expands geographical presence in Southern Germany and Spain
• Strengthens capabilities in automotive, manufacturing, and financial services sectors
• Enhances solution portfolio with Novatec's application performance management products
• Increases market presence in the growing e-mobility sector

Negative

• None.

Acquisition will strengthen CGI's presence in the automotive, manufacturing and financial services sectors in Southern Germany, and will expand its presence in Spain

Stock Market Symbols
GIB (NYSE)
GIB.A (TSX)
www.cgi.com/newsroom

Montréal, Quebec and Leinfelden-Echterdingen, Germany, Jan. 30, 2025 /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB), one of the largest independent IT and business consulting services firms in the world, today announced that its wholly-owned limited partnership, CGI Deutschland B.V. & Co. KG, has signed an agreement to acquire Novatec, an IT services firm specialized in agile software engineering, digital products and strategic business & IT consulting services. More than 300 highly skilled IT and consulting experts from across Novatec's eight offices in Germany, with a strong presence in the Stuttgart metro market and the South-West region, as well as from Granada, Spain, will join CGI and strengthen its footprint in the manufacturing and financial services sectors, with a special focus on the automotive industry and e-mobility. The purchase agreement was signed on January 29, 2025. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close in March 2025.

Founded in 1996, Novatec serves enterprise clients through a wide range of IT consulting and software development services, including digital strategies, cloud-based solutions and digital product development. Novatec's product solutions in application performance management will complement CGI's existing solution portfolio that enables clients to accelerate digital innovation through new technologies such as AI.

"By combining the expertise of Novatec and CGI, we will drive additional business value for our clients in the automotive, manufacturing, and financial services industries," said Ralf Bauer, CGI President of Germany operations. "Both companies have an excellent reputation for providing deep industry insight and technology expertise as well as a proven track record of excellence in execution -- all of which enable us to partner with clients to help them achieve trusted business outcomes."

CGI's acquisition of Novatec will enable Novatec clients to gain access to CGI's global capabilities, network of delivery centers, and breadth of end-to-end services and solutions. Both companies are strongly guided by an ownership-driven mentality of outcome-oriented intrapreneurship, innovation and accountability in the local communities where employees live and work.

"With CGI, we found a company aligned with our own principles and culture, which was highly important for us in taking the next step forward," said Michael Schuchart, Novatec Founder and Managing Director. "We are glad to see an excellent match between both companies based on the local proximity model of CGI and a wide range of opportunities for us to expand our joint portfolio for the benefit of our clients."

In Germany, CGI has operations across 26 offices to enable consultants to partner with clients through a proximity-based model while drawing on the support of the company's broad international presence and wide range of services to deliver value both locally and globally.

About CGI

Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 91,000 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 2024 reported revenue is CA$14.68 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

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SOURCE CGI Inc.

FAQ

When will CGI's acquisition of Novatec be completed?

The acquisition is expected to close in March 2025, subject to regulatory approvals and other customary closing conditions.

How many employees will join CGI through the Novatec acquisition?

More than 300 IT and consulting experts from Novatec's eight offices in Germany and Granada, Spain, will join CGI.

What industries will benefit from CGI's acquisition of Novatec (GIB)?

The acquisition will strengthen CGI's presence in the automotive, manufacturing, and financial services sectors, with a special focus on the automotive industry and e-mobility.

What services does Novatec bring to CGI's portfolio?

Novatec brings expertise in agile software engineering, digital products, strategic business & IT consulting, digital strategies, cloud-based solutions, and application performance management.

How many offices does CGI have in Germany after the Novatec acquisition?

CGI operates across 26 offices in Germany, implementing a proximity-based business model.