CGI Inc. - GIB STOCK NEWS

CGI has released its 2020 Corporate Social Responsibility (CSR) report, showcasing advancements in its initiatives focusing on people, communities, and climate. Highlights include a commitment to achieve net zero carbon emissions by 2030 and significant efforts in diversity and inclusion through STEM camps benefiting nearly 45,000 students. CGI's community support program, Dream Connectors, provided over 23,000 volunteer hours aimed at local needs, particularly during the pandemic. The company reduced carbon emissions by 50% since 2014, with 41% of its energy from renewable sources.

CGI has secured a six-year, €250 million managed services contract with the Bavarian State Ministry of Justice to enhance digitization and IT services across 220 locations in Bavaria. This deal involves modernizing the ministry's IT infrastructure, managing two data centers, and supporting approximately 16,500 workstations. CGI's efforts will also include implementing digital media technology in meeting rooms and facilitating electronic legal transactions. The initiative aligns with Bavaria's focus on modernizing its public sector and improving citizen services.

Portage la Prairie Mutual Insurance Company has deployed ClaimCenter as part of its Legacy System Replacement strategy, implementing it across all lines of business. The project was completed on time and under budget, with positive user feedback highlighting the system's ease of use. Portage has also selected additional Guidewire products including PolicyCenter, BillingCenter, and DataHub, aiming to enhance its data management and competitiveness. This phase marks a significant milestone for Portage in modernizing its insurance systems.

On March 1, 2021, CGI announced that Co-founder André Imbeau has concluded a monetization transaction initiated in May 2008, transferring 2,500,000 Class B shares into Class A subordinate voting shares. After the conversion, he retains 900,000 Class B shares and 30,508 Class A shares. This transition is not expected to significantly impact CGI's voting dynamics or Imbeau's advisory role. CGI, a leading IT consulting firm with over C$12 billion in revenue for fiscal 2020, continues to focus on delivering integrated IT and business services globally.

CGI (NYSE: GIB) has announced a new IT delivery center in Knoxville, Tennessee, expected to create 300 local jobs. Governor Bill Lee praised the initiative, emphasizing the state's economic growth and commitment to quality job creation. The center will engage with local educators and support workforce development, particularly through partnerships with the University of Tennessee. CGI selected Knoxville after a two-year site-selection process, highlighting access to talent and a robust innovation culture. Hiring is set to begin in March 2021.

CGI has secured a contract with the Virginia Department of General Services to enhance its eVA procurement system. This award-winning platform, which has processed 12.6 million orders worth $127 billion since its launch in 2001, will undergo modernization to improve user experience and supplier services. The enhancements include better catalog maintenance, smarter workflow functions, and increased collaboration capabilities. As a result, CGI aims to drive innovation and operational efficiencies, further establishing eVA as a leader in government eProcurement.

CGI has been awarded a contract by the European Space Agency to create a wildfire mapping service using Earth Observation, AI, and cloud computing. Collaborating with the University of Leicester and partners from Australia and France, CGI aims to improve wildfire risk management by evaluating AI algorithms for better burnt area mapping. This service will be available through the EO4SD Lab portal. The initiative addresses the rising frequency of wildfires exacerbated by climate change, underscoring the importance of effective monitoring for environmental management.

CGI announced its intent to repurchase 4,204,865 Class A subordinate voting shares from Caisse de dépôt et placement du Québec at $95.13 per share, a discount to the previous closing price. This transaction is part of CDPQ's portfolio rebalancing, maintaining a 10.9% stake in CGI post-transaction. The share buyback aligns with CGI's value creation strategy and is supported by a solid liquidity position of over $3.2 billion as of December 2020. The buyback will occur under CGI's normal course issuer bid, with completion expected on February 22, 2021.