CGI Group (GIB.A), one of the world’s largest IT and business consulting firms, announced it has signed an agreement for the acquisition of Cognicase Management Consulting (CMC).
CMC provides technology and management consulting services to clients in Spain, Italy, Portugal, Colombia, and Mexico.
The acquisition will strengthen CGI’s presence in Spain, and its customer proximity model. CMC will provide CGI with increased capacity to better serve its clients and help them accelerate their digitalization.
CGI president and CEO George D. Schindler said, “We are looking forward to joining forces with CMC in helping our clients accelerate their digitization and driving even greater business value from our united end-to-end capabilities.
“CMC’s services, solutions and highly skilled employees will enable us to significantly strengthen our services portfolio and capabilities in Spain.”
The Montreal-based company said it has received approval from Spanish authorities for foreign investment, and the deal is expected to close by the end of the month. (See Insiders’ Hot Stocks on TipRanks)
On October 4, RBC Capital analyst Paul Treiber reiterated a Buy rating on GIB.A with a price target of C$125. This implies 8.9% upside potential.
Overall, consensus on the Street is that GIB.A is a Strong Buy, based on eight Buys and one Sell. The average CGI price target of C$126.90 implies upside potential of 10.5% to current levels.