CGI to acquire Apside in expansion move

PARIS - CGI (TSX: GIB.A) (NYSE: GIB), a prominent IT and business consulting services firm with a market capitalization of $22 billion, has signed an exclusivity agreement to acquire Apside, a French digital and engineering services company. The agreement, signed on March 28, 2025, is a strategic move for CGI to enhance its operations in France and other countries. According to InvestingPro data, CGI maintains a strong financial health score and operates with a moderate level of debt, suggesting solid positioning for this acquisition.

Apside, with nearly 50 years of expertise, is known for its deep industry knowledge across various sectors, including manufacturing, financial services, and the public sector. The firm boasts a broad technology expertise in data, AI, cloud, and cybersecurity. CGI’s strong market position is reflected in its healthy EBITDA of $1.8 billion and revenue of $10.3 billion in the last twelve months.

The acquisition is contingent upon regulatory approvals and customary closing conditions, including consultations with employee representative bodies. If all conditions are met, the transaction is expected to be finalized in June 2025.

This merger would see over 2,500 Apside professionals join CGI, bolstering the company’s footprint in France, Canada, Portugal, Belgium, Morocco, and Switzerland. Apside currently serves more than 300 clients worldwide and operates from 28 offices in six countries.

Caroline de Grandmaison, President of CGI’s France and Luxembourg operations, emphasized the complementary nature of CGI and Apside’s expertise and shared values. She highlighted the potential for the merger to enhance CGI’s service offerings and strengthen its client relationships, particularly in manufacturing and financial services.

Valérie Lafdal, Apside President, expressed confidence that Apside’s teams and clients would benefit from the merger due to the shared values and enhanced service offerings that could expedite digital transformations.

CGI, founded in 1976, is one of the world’s largest independent IT and business consulting services firms, with 91,000 consultants and professionals globally. The company reported CA$14.68 billion in revenue for the fiscal year 2024 and is listed on both the TSX and NYSE. InvestingPro analysis reveals that eight analysts have revised their earnings upward for the upcoming period, with the company maintaining strong cash flows and a solid return on equity of 19%. For deeper insights into CGI’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a press release statement from CGI Inc.

In other recent news, CGI Inc. reported first-quarter results that exceeded analyst expectations. The company posted adjusted earnings per share of C$1.97, surpassing estimates of C$1.40, and achieved revenue of C$3.79 billion, beating the anticipated C$2.68 billion. This performance represents a year-over-year revenue growth of 5.1%, with earnings before income taxes rising by 12.3% to C$591.7 million. CGI also announced a significant acquisition of Novatec, a digital services firm in Germany and Spain, enhancing its service offerings in key industries such as automotive and financial services.

RBC Capital Markets has maintained an Outperform rating on CGI Group, with a raised price target of Cdn$192.00, highlighting the company’s strategic mergers and acquisitions as a key driver of growth. Meanwhile, Bernstein adjusted its price target to C$144, citing higher-than-expected restructuring costs and maintaining an Underperform rating. The restructuring efforts, particularly in Europe, are expected to cost around C$42 million by the third quarter of fiscal 2025. CGI’s recent acquisitions and strategic initiatives aim to bolster its financial performance despite macroeconomic challenges.

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