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MONTRÉAL - CGI (TSX:GIB.A) (NYSE:GIB) announced Wednesday the acquisition of Winnipeg-based IT consulting firm Online Business Systems, adding more than 350 professionals to its workforce across Canada and the United States. The move aligns with CGI’s aggressive capital allocation strategy, as InvestingPro data shows management has been actively buying back shares while maintaining a strong free cash flow yield of 8%.
The acquisition strengthens CGI’s presence in Winnipeg while enhancing its capabilities in digital transformation, cybersecurity, and artificial intelligence, according to a company press release.
Founded in 1986, Online Business Systems has built its reputation helping organizations modernize operations and enhance customer experience through technology solutions.
"This acquisition significantly strengthens our presence in Winnipeg, and Online Business Systems’ local expertise in digital transformation, cybersecurity and AI further enhances CGI’s portfolio of services and solutions," said Michael Godin, President of CGI Canada.
Charles Loewen, Founder, President, and CEO of Online Business Systems, cited cultural alignment between the firms as a factor in the deal.
The transaction expands CGI’s reach among enterprise clients in North America while providing Online Business Systems’ clients access to CGI’s global expertise and delivery centers.
CGI, founded in 1976, is among the largest independent IT and business consulting services firms globally with 94,000 consultants worldwide. The company reported revenue of $15.91 billion for fiscal 2025.
Financial terms of the acquisition were not disclosed in the announcement. CGI maintains a solid financial position with a P/E ratio of 16.9 and a healthy Altman Z-Score of 10.4, though it faces challenges with gross profit margins of 20.6%. Investors can access CGI’s comprehensive Pro Research Report and 9 additional ProTips through InvestingPro, which provides deeper insights into what really matters for smarter investing decisions.
In other recent news, CGI Inc reported impressive financial results for the fourth quarter of 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $2.13, significantly higher than the forecasted $1.51, and its revenue reached $4.01 billion, exceeding the anticipated $2.89 billion. In addition to these financial achievements, CGI has been awarded a contract worth up to £250 million over five years with the UK tax authority, His Majesty’s Revenue and Customs, to manage integration services. The contract includes an initial three-year term with two optional one-year extensions.
Furthermore, CGI has been recognized as an Amazon Web Services (AWS) Premier Tier Services Partner and received AWS SAP Competency Partner status, showcasing its expertise in modernizing SAP workloads with AI-integrated cloud solutions. Despite these accomplishments, Jefferies has downgraded CGI Group’s stock rating from Buy to Hold, citing concerns over its lagging organic growth compared to industry peers. The downgrade also included a reduction in the price target to $81.00 from $105.00. These developments reflect CGI’s ongoing efforts to expand its capabilities and secure significant contracts while navigating growth challenges.
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