The multinational technology consulting firm CGI (TSX: GIB.A, NYSE: GIB) has announced the acquisition of Novatec, a company specializing in agile software engineering, digital products, and strategic IT and business consulting. With this move, CGI strengthens its presence in Germany and Spain, consolidating its position in key sectors such as automotive, industry, and financial services.
Strategic Expansion in Europe
The purchase has been formalized through its subsidiary CGI Deutschland B.V. & Co. KG and is subject to the relevant regulatory approvals, with a transaction closing expected in March 2025. The addition of more than 300 specialists from Novatec will allow CGI to enhance its service delivery capabilities across its eight offices in Germany and its headquarters in Granada, Spain.
The acquisition of Novatec will not only expand CGI’s geographic presence but also strengthen its portfolio of cloud solutions, digital strategies, and product development, enabling accelerated innovation in emerging technologies such as artificial intelligence (AI) and application performance management.
A Strategic Fit in the Tech Sector
Ralf Bauer, President of CGI’s Operations in Germany, highlighted that the merger of the two companies will enhance the business value to their clients, especially in the automotive and industrial sectors:
“By combining the expertise of Novatec and CGI, we will drive additional value in our clients’ businesses. Both companies have a strong reputation in the industry, deep technological expertise, and a track record of excellence in execution, enabling us to help our clients achieve reliable results.”
Meanwhile, Michael Schuchart, founder and CEO of Novatec, affirmed that the integration with CGI aligns with his company’s philosophy and values:
“We have found in CGI a company with principles and culture similar to ours, which was essential for us in this transition. We believe there is an excellent fit between both companies and a great opportunity to expand our service portfolio for the benefit of our clients.”
CGI Strengthens Its Client Proximity Model
With operations in 26 offices in Germany, CGI’s strategy is based on a proximity model, allowing for close collaboration with clients at the local level while leveraging its international network to offer innovative and scalable global solutions.
The incorporation of Novatec will enable CGI to expand its consulting and software development offerings, with an emphasis on key areas such as electrification, cloud services, and digital transformation for businesses.
CGI, a Giant in IT Consulting
Founded in 1976, CGI is one of the largest independent IT consulting firms in the world, with 91,000 professionals globally. It offers services in systems integration, IT management, and business processes, as well as intellectual property solutions. In the last fiscal year, CGI reported revenues of CAD 14.68 billion, cementing its status as a key player in the tech sector.
With this acquisition, CGI reinforces its position as a leader in IT consulting in Europe, with a clear vision to strengthen its presence in strategic markets and accelerate digital innovation for its clients.
via: CGI