CGI Inc - GIB STOCK NEWS

CGI Inc. has successfully acquired Array Holding Company, enhancing its digital service offerings for the U.S. Department of Defense and government entities. This acquisition, finalized on October 1, 2021, aligns with CGI's strategy to enter key public sector markets, particularly the U.S. Air Force and Space Command. ARRAY contributes approximately 275 professionals, bolstering CGI's capabilities in digital modernization, DevOps, and cybersecurity. The merger positions CGI as a stronger player in meeting the increasing demands of U.S. public sector clients.

On October 4, 2021, CGI (NYSE: GIB) announced a significant reorganization of CGI Federal to enhance alignment with U.S. federal government priorities. The restructuring includes adding senior talent, reorganizing business units, and creating a new horizontal practice focused on advisory services and emerging technologies. This strategic shift aims to better address the digital transformation needs of federal agencies and leverage CGI's global expertise for improved service delivery.

CGI has announced a pricing of C$600 million in senior unsecured notes, due in seven years, with an interest rate of 2.100% per annum. The offering is set to close around September 16, 2021. This issuance complements a prior offering of US$1.0 billion in senior unsecured notes. The net proceeds, estimated to be C$595.3 million, will primarily be used to repay a C$1,250 million term loan maturing in March 2023 and for general corporate purposes. The notes will be offered privately in Canada, and will not be registered in the U.S.

CGI has priced its offering of US$1.0 billion in senior unsecured notes, comprising US$600 million in 5-year notes at 1.450% interest and US$400 million in 10-year notes at 2.300% interest. The offering is set to close on September 14, 2021, and net proceeds are expected to be approximately US$988.5 million, which will be used primarily to repay approximately C$1,245 million of existing indebtedness due in March 2023. The notes will be available to qualified institutional buyers in the U.S. and on a private placement basis in Canada.

CGI (TSX: GIB.A, NYSE: GIB) has announced a private offering of senior unsecured notes, aiming to raise approximately US$1 billion. The offering will involve two tranches with varying maturities and interest rates. Proceeds will be utilized to repay debt under a term loan facility maturing in March 2023. The notes will be available to qualified institutional buyers in the United States under Rule 144A and in Canada under private placement exemptions. This offering is not registered under the Securities Act and is subject to market conditions.

CGI (NYSE: GIB) has secured a $34.4 million contract from the U.S. Department of Health and Human Services to implement an API Gateway at the Centers for Medicare and Medicaid Services (CMS). This five-year project is designed to enhance data sharing and combat fraud in Medicare and Medicaid programs. The implementation aims to streamline operations, potentially saving CMS and taxpayers millions. CGI's recent contracts also include a $33 million support contract for the Medicare Appeals System and a $100 million redesign task order for the CMS Provider Enrollment System.

CGI has renewed its payroll services alliance with Desjardins in a 10-year agreement valued at over CA$500 million. This long-standing partnership, in place since 1997, will enhance Desjardins' payroll service center, ensuring business continuity, IT infrastructure, and customer support. The collaboration aims to provide high-quality and secure services to Desjardins' 378,000 business clients, supporting their digitization and growth. CGI, founded in 1976, is among the largest independent IT consulting firms with annual revenue of CA$12.16 billion.