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WARSAW - CGI (TSX:GIB.A) (NYSE:GIB), a $19.25 billion market cap company and prominent player in the IT services industry, announced Wednesday that its Polish subsidiary has entered into a conditional agreement to acquire Comarch Polska SA, a company specializing in IT solutions for public administration. According to InvestingPro data, CGI has demonstrated solid performance with 7.13% revenue growth over the last twelve months.
The acquisition, subject to regulatory approvals and customary closing conditions, will add more than 460 IT and business consulting professionals to CGI’s workforce, expanding the firm’s presence in Poland and the Baltic States to approximately 1,500 professionals. The move comes as CGI’s stock trades near its 52-week low, suggesting potential upside according to InvestingPro’s Fair Value analysis.
Comarch Polska, a subsidiary of Comarch SA, has been providing software and IT services to the public administration sector since 1993. The company offers ERP solutions, digital process and document management tools, as well as consulting and managed services.
"Upon completion, the merger enables CGI to strengthen the depth of our public sector expertise, bring our global expertise to clients, and accelerate growth in Poland, one of Europe’s most digitally advanced regions," said François Boulanger, CGI President and CEO.
Jarosław Mikos, Comarch CEO, stated that the acquisition "demonstrates that the solutions developed by Comarch are not only innovative but also competitive on international markets."
According to Bartłomiej Nieścierowicz, Senior Vice-President and Leader for CGI in Poland, Lithuania, Latvia and Estonia, the acquisition will allow CGI to deliver comprehensive digital and business transformation offerings for social security, health, and agricultural agencies, as well as leverage CGI’s expertise in AI to enhance public services.
The financial terms of the transaction were not disclosed in the company’s press release. For investors seeking deeper insights into CGI’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of its coverage of 1,400+ top stocks.
In other recent news, CGI has secured several significant contracts and partnerships. The U.S. Department of the Treasury has awarded CGI Federal a contract to modernize its digital services, focusing on enhancing site performance and security. Additionally, CGI has been selected for a multi-year agreement with Svenska kraftnät to provide IT consulting services aimed at improving Sweden’s electricity grid infrastructure. In a collaboration with Barclays, CGI is integrating its Trade360 global trade finance solution with Komgo’s Konsole platform to enhance transaction transparency and processing efficiency.
Furthermore, CGI has won a 10-year contract with the State of New Jersey to support the State Integrated Recovery Operations Management Systems, a platform crucial for managing disaster recovery funds. The Texas Comptroller of Public Accounts has also chosen CGI to implement a new enterprise financial system, replacing several outdated state systems with a cloud-based solution. These developments reflect CGI’s expanding role in modernizing public and private sector operations globally.
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