CGI selected to modernize Sweden’s power grid in multi-year deal

STOCKHOLM - CGI (TSX:GIB.A) (NYSE:GIB), a prominent player in the IT Services industry with a market capitalization of nearly $20 billion, has secured a multi-year framework agreement with Svenska kraftnät, Sweden’s national transmission system operator, to provide IT consulting services for the country’s electricity grid infrastructure. According to InvestingPro analysis, CGI maintains a robust financial health score, positioning it well for such strategic contracts.

The agreement, announced Wednesday, covers IT consulting in architecture, leadership, and security areas aimed at enhancing Sweden’s electricity transmission capacity and building more resilient energy infrastructure.

Svenska kraftnät manages Sweden’s national electricity transmission grid, which includes approximately 16,000 km of power lines and around 175 transformer and switching stations. The agency has planned investments totaling SEK 210 billion through 2035 to strengthen the country’s power system.

"Contributing to reinforcing the digital foundation of one of Sweden’s most critical public infrastructures is both a responsibility and an opportunity we embrace fully," said Rakesh Kapoor, Senior Vice-President and Business Unit Leader for CGI in Stockholm and Central Sweden, in a press release statement.

The scope of work addresses challenges including meeting increased energy demand and advancing energy transition initiatives in coordination with Nordic and European partners.

CGI has previously deployed its proprietary AgileDX platform for central data integration across several European electricity markets. The company provides services to government agencies, public entities, and private sector clients in the energy sector.

Founded in 1976, CGI employs 93,000 consultants and professionals globally, providing IT and business consulting services. The company reported CA$14.68 billion in revenue for fiscal 2024, with current trading levels near its 52-week low presenting a potential opportunity based on InvestingPro’s Fair Value analysis. The company maintains healthy financials with a current ratio of 1.27 and generates strong cash flows, with $1.5 billion in levered free cash flow over the last twelve months.

In other recent news, CGI has secured a significant 10-year contract with the State of New Jersey to continue developing and supporting the State Integrated Recovery Operations Management Systems (SIROMS). This platform has been instrumental in managing recovery efforts and has overseen the distribution of over $7.2 billion in recovery funds. Additionally, CGI has been awarded a contract by the Texas Comptroller of Public Accounts to modernize the state’s financial systems with a new enterprise financial system based on CGI Advantage. This initiative will replace several legacy systems with a cloud-based solution.

CGI has also formed a strategic partnership with Finnish retail company Kesko to accelerate digital transformation efforts. This partnership will focus on a range of IT services, including cloud and integration services, to support the K Group retail network. Furthermore, Barclays has partnered with CGI to integrate the CGI Trade360 global trade finance solution with Komgo’s Konsole platform. This integration aims to enhance transaction transparency and reduce operating risks for Barclays’ corporate clients. These developments highlight CGI’s expanding role in various sectors through strategic partnerships and technological advancements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.