CGI's Strategic Acquisition of Novatec Enhances Digital Service Capabilities in Europe

CGI Acquires Novatec: A Major Step in Digital Growth

In a strategic move to bolster its digital service offerings in Europe, CGI (TSX: GIB.A, NYSE: GIB) has entered into an agreement to acquire Novatec, a leading IT services firm based in Germany and Spain. This announcement marks an important milestone for CGI, one of the world’s biggest independent IT and business consulting firms. The deal was finalized on January 29, 2025, and is expected to close by March 2025, pending regulatory approvals.

Strengthening CGI's European Footprint

With its headquarters in Montreal, CGI aims to enhance its presence in key areas, specifically in southern Germany and Spain. The acquisition will infuse CGI with over 300 highly skilled professionals from Novatec, enriching their capabilities in agile software engineering and strategic business IT consulting. Novatec’s stronghold in the Stuttgart metropolitan area and its office in Granada, Spain, will serve as advantageous assets for CGI as it seeks to deepen its impact in the automotive and manufacturing industries, alongside the dynamic financial services sector.

Novatec's Expertise and Clientele

Founded in 1996, Novatec has a rich history of serving enterprise clients through a diverse range of IT solutions. Their expertise includes crafting digital strategies, implementing cloud-based solutions, and developing cutting-edge digital products. Notably, Novatec's strengths in application performance management perfectly complement CGI's existing service portfolio, allowing for enhanced support of clients navigating the challenges of digital transformation.

Ralf Bauer, CGI's President of Germany operations, emphasized the mutual benefits of this acquisition: "By combining the expertise of Novatec and CGI, we will drive additional business value for our clients in industries such as automotive, manufacturing, and financial services. Both companies have built a solid reputation for providing deep industry insight and technological proficiency, enabling us to deliver trusted business outcomes."

Expanding Capabilities and Opportunities

The integration of Novatec into CGI's fold is expected to empower existing Novatec clients with access to CGI's global capabilities and expansive delivery network. CGI is driven by a philosophy focused on innovation, accountability, and a commitment to the communities their employees serve.

Michael Schuchart, Novatec's Founder and Managing Director, shared his enthusiasm regarding the partnership: "With CGI, we found a company aligned with our own principles and culture, which was essential for us in taking this next step forward. We see incredible potential for mutual growth that will benefit our clients."

The collaboration aligns perfectly with CGI's operational model in Germany, where the company maintains 26 offices that allow consultants to work closely with clients. This proximity-based model, combined with CGI's broad international presence, will provide unmatched support for local and global challenges.

CGI's Vision for the Future

CGI, founded in 1976, boasts a seasoned team of 91,000 professionals globally, offering end-to-end services ranging from strategic IT and business consulting to systems integration and managed IT services. With reported revenues of CA$14.68 billion in fiscal 2024, CGI is well-positioned for future growth. The strategic acquisition of Novatec will not only broaden CGI’s service offerings but also enhance its delivery capabilities—enabling even greater transformations for clients in an ever-evolving digital landscape.

As CGI continues to expand its reach and relevance in the digital services sphere, the acquisition of Novatec underscores its commitment to delivering comprehensive solutions that cater to the needs of modern enterprises across Europe.

For further information, visit CGI's official site.