CGI Inc - GIB STOCK NEWS

CGI (TSX: GIB.A) (NYSE: GIB) has extended its partnership with the City of Springfield, Illinois, to upgrade the city's enterprise resource planning (ERP) system using CGI Advantage®, a cloud-based solution designed specifically for government operations.

The upgrade will provide Springfield with improved user experience, real-time analytics, and embedded reporting capabilities. Key benefits include reduced risk, enhanced time and leave-tracking, streamlined procurement processes, and support for multi-agency solutions through cloud architecture. The modernization aims to improve accessibility, reduce training times, and eliminate manual processes across city departments.

Mayor Misty Buscher highlighted that the move to CGI's Advantage SaaS platform will enable continuous system improvements and innovations. The implementation is expected to boost workforce capacity and improve citywide services through standardized and strengthened business processes.

CGI (TSX: GIB.A) (NYSE: GIB) has been awarded the ACCA India Award 2024 for Excellence in Digital Transformation, recognizing their AI-powered solution CGI DigiOps. The award acknowledges CGI's contribution to sustainable business practices and stakeholder value creation.

CGI DigiOps integrates various intellectual property tools, including CGI SiteReliability360 and CGI ServiceInsight, along with accelerators, foundational models, and alliance services. The solution provides an AI-powered service delivery approach that combines application and infrastructure management to help clients accelerate transformation.

Currently implemented across various sectors including energy, utilities, and retail, CGI DigiOps delivers operational efficiencies, cost savings, faster decision-making, and enhanced end-user experiences through its insights-led digital operations approach.

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.

CGI (TSX: GIB.A) (NYSE: GIB) conducted its Annual General Meeting of Shareholders on January 29, 2025, in Montréal via live webcast. All 14 proposed directors were successfully elected through electronic ballot voting.

The election results showed strong shareholder support, with all directors receiving over 96% approval. Notable results include Alison C. Reed and Stephen S. Poloz receiving the highest approval rates at 99.76% and 99.72% respectively. Serge Godin received the lowest, though still strong, approval rate at 96.77%.

CGI (NYSE: GIB) has announced a share purchase agreement to acquire BJSS, a major UK-based technology and engineering consultancy. The transaction, announced on January 29, 2025, is expected to close in February 2025, subject to regulatory approvals.

The acquisition will add over 2,400 skilled professionals to CGI's workforce, strengthening its UK presence across key sectors including retail, health, government, financial services, and energy & utilities. Founded in 1993, BJSS specializes in technology strategy, customer experience design, managed services, software engineering, AI, data and insights, cloud solutions, and cybersecurity services.

Following the acquisition, CGI will operate across 26 locations in the UK, implementing a proximity-based model while leveraging its international presence. The merger aims to enhance service delivery capabilities and create new opportunities for employees, with BJSS staff gaining access to CGI's employee ownership culture.

CGI (NYSE: GIB) announced that Julie Godin has been appointed Executive Chair of the Board of Directors, while founder Serge Godin transitions to the role of Board Co-Chair. Julie Godin, who currently serves as Co-Chair and Executive Vice-President of Strategic Planning and Corporate Development, will lead the company's evolution after 15 years of incrementally assuming leadership responsibilities across enterprise functions.

The succession plan has been carefully designed over nearly two decades to ensure CGI's long-term profitable growth. In her new role, Julie Godin will work alongside CEO François Boulanger and the company's 91,000 CGI Partners. Serge Godin will continue to focus on transformational acquisitions and large-scale client engagements, emphasizing that he is not retiring and remains committed to ensuring CGI's continued success.

CGI (NYSE: GIB) reported strong Q1 fiscal 2025 results with revenue reaching $3.79 billion, up 5.1% year-over-year. The company demonstrated solid financial performance with net earnings of $438.6 million, up 12.5%, and diluted EPS of $1.92, increasing 15.0% compared to the previous year.

Key highlights include cash from operations of $646.4 million (17.1% of revenue), bookings of $4.16 billion with a book-to-bill ratio of 109.8%, and a backlog of $29.76 billion. The company maintains a strong financial position with net debt of $1.57 billion and a net debt-to-capitalization ratio of 13.7%.

The Board authorized a renewal of its Normal Course Issuer Bid for up to 20,196,413 Class A shares and declared a quarterly dividend of $0.15 per share. The company also initiated restructuring actions in Europe, mainly in Germany, expecting to incur approximately $42 million in costs by Q3-F2025.

CGI (TSX: GIB.A) (NYSE: GIB) announced the renewal of its Normal Course Issuer Bid (NCIB), pending Toronto Stock Exchange approval. The company plans to purchase and cancel up to 20,196,413 Class A subordinate voting shares, representing 10% of its public float as of January 23, 2025.

Under the renewed NCIB, which will run from February 6, 2025, to February 5, 2026, daily purchases on the TSX will be to 81,125 shares. The company will purchase shares at market price through TSX, NYSE, and alternative trading systems in Canada.

Under the current NCIB ending February 5, 2025, CGI has already repurchased 7,088,507 Class A shares at a weighted average price of $145.37 per share, totaling $1,030,487,393.

CGI (TSX: GIB.A) (NYSE: GIB) has announced its upcoming Annual General Meeting of Shareholders and first quarter fiscal 2025 results release, both scheduled for Wednesday, January 29, 2025. The Annual General Meeting will be held virtually at 11:00 a.m. (EST) via live webcast, allowing shareholders to participate and vote online regardless of location.

The company will release its Q1 FY2025 results before markets open on the same day, followed by a conference call at 9:00 a.m. (EST). The call will feature François Boulanger, President and CEO, and Steve Perron, Executive VP and CFO, discussing the financial results for the quarter ended December 31, 2024.

Only shareholders of record as of December 2, 2024, and authorized proxyholders will be eligible to vote at the meeting. The company has distributed meeting materials through Notice and Access rules, with documents available on CGI's website.