Yahoo Finance CGI (GIB) Aids Portfolio With Celero Credit Union Acquisition
CGI Group GIB recently announced its acquisition of Celero’s credit union business in Canada, expanding its core and digital banking service offerings to the Canadian credit union sector.
The move includes master services agreements covering managed services, core banking, digital banking and related IT services, solidifying CGI’s position in the Canadian market.
With the acquisition, CGI will integrate the managed services business of over 90 credit unions, forming new partnerships with Credit Union Central of Manitoba (CUCM), Alberta Central and SaskCentral.
More than 150 Celero employees will join CGI, ensuring continuity and quality of service for all clients while benefiting from CGI’s ownership-based culture and professional development opportunities.
The acquisition enhances CGI’s nearly 30-year legacy of serving Canadian credit unions with innovative digital solutions and professional services.
CGI Rides on Expanding Clientele
The latest move bodes well with CGI’s focus on expanding its core and digital banking solutions, strengthening its presence in the Canadian credit union sector through acquisitions.
The company’s acquisition of Momentum Consulting, a U.S based IT and business consulting firm is a major positive. The buyout has been benefiting GIB by expanding its capabilities in digital transformation, data analytics and managed services with an addition of 175 professionals.
Apart from acquisitions, CGI’s expanding customer base and portfolio strength are expected to drive top-line growth. GIB’s strong partner base, which includes Munich Re, Nokia NOK, Exxon Mobil XOM and Amazon AMZN, has been a key catalyst.
In June, CGI renewed its partnership with Exxon Mobil to enhance payment and loyalty services across Europe and Asia Pacific using CGI PayPartner360, benefiting more than 13,000 fuel retail sites and engaging 10 million active users worldwide.
CGI and Nokia also deepened their partnership to integrate 5G private wireless networking technology with CGI’s business services, delivering a pioneering 5G testbed in Northern Ireland for the Smart Nano NI consortium’s smart manufacturing initiatives.
CGI’s partnership with Amazon’s cloud computing platform, Amazon Web Services (AWS), remains noteworthy. Per the terms, the company will provide its flexible cloud-ready enterprise payments solution, CGI All Payments on AWS, to streamline payment procedures for banks and offer scalability, ISO 20022 standards compliance and cloud-based delivery.
However, this Zacks Rank #3(Hold) company’s cautionary spending and overall slow procurement decision-making have negatively impacted its near-term prospects. You can see the complete list of today’s Zacks #1 Rank stocks here.
The stock has declined 4.6% year to date against the broader Zacks Computer & Technology sector’s return of 28.2%.
The Zacks Consensus Estimate for third-quarter fiscal 2024 revenues is pegged at $2.69 billion, indicating a 0.27% year-over-year decline. The consensus estimate for third-quarter earnings is pegged at $1.40 per share, which remained unchanged in the past 30 days.
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