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CGI (GIB) Acquires Harwell to Expand Financial Services Unit

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CGI’s (GIB - Free Report) subsidiary, CGI France SAS, completed the acquisition of Harwell Management to expand its financial services segment. France-based Harwell Management is a management consulting firm with about 150 employees who will join CGI’s Business Consulting unit in France. CGI Business Consulting unit already has a strong employee base of 800.

With the acquisition, CGI plans to cater to the growing demand for management consulting services globally. Per Mordor Intelligence report, the management consulting services market is expected to witness a CAGR of more than 5.5% between 2021 and 2026.

CGI Group, Inc. Price and Consensus

 

CGI Group, Inc. Price and Consensus

CGI Group, Inc. price-consensus-chart | CGI Group, Inc. Quote

The acquisition of Harwell will aid CGI in providing comprehensive consulting services for its global client base.

The Harwell buyout will broaden the company’s financial service offerings in areas such as retail banking, corporate and investment banking, capital markets, insurance, and healthcare mutuals, as well as other specialized financial services like leasing and personal financing.

CGI specializes in delivering a wide range of services, including business consulting, system integration, IT, and application. The business consulting segment focuses on ways to improve client’s business agility and manage change.

CGI has around 84,000 consultants in more than 400 locations worldwide, allowing clients to navigate complex challenges.

Last year CGI announced the acquisition of Cognicase Management Consulting to further expand its operations in Spain and strengthen the company’s client-proximity model. Cognicase Management offers technology and management consulting services and solutions to clients to speed up their digitalization.

The client-proximity model organizes activities inside metro markets, enabling proactive delivery of innovative services and solutions by gaining comprehensive knowledge of the customers' businesses.

Shares of CGI have lost 4.7% in the past year compared with the industry’s decline of 1.4%.

Zacks Rank & Stocks to Consider

CGI currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Vishay Intertechnology (VSH - Free Report) and Avnet (AVT - Free Report) . InterDigital and Avnet currently sport a Zacks Ranks #1 (Strong Buy), whereas Vishay Intertechnology has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $3.28 per share, increasing 43.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.

InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.13%. Shares of IDCC have declined 20.8% in the past year.

The Zacks Consensus Estimate for Vishay Intertechnology’s 2022 earnings is pegged at $2.68 per share, rising 10.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 22.7%.

Vishay Intertechnology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.96%. Shares of VSH have declined 13.6% in the past year.

The Zacks Consensus Estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, rising 20.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 37.2%.

Avnet’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 21.22%. Shares of Avnet have grown 9.6% in the past year.

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