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FAIRFAX, Va., July 30, 2024 /CNW/ - CGI Federal Inc. (CGI), the wholly-owned U.S. operating subsidiary of leading global IT and business consulting services firm CGI Inc. (TSX: GIB.A) (NYSE: GIB), today announced its intent to acquire Aeyon, a leader in digital transformation and Artificial Intelligence (AI) technologies, including data management, analytics and intelligent automation for the U.S. Federal Government. The acquisition further complements and expands CGI Federal's offerings portfolio as well as relationships with critical national security clients, such as the Office of the Secretary of Defense, multiple branches and agencies of the U.S. military, the Federal Aviation Administration (FAA) and the National Aeronautics and Space Administration (NASA). The parties entered into a definitive purchase agreement on June 22, 2024, relating to the transaction, which is expected to close in the fourth quarter of CGI's fiscal year 2024, subject to regulatory approvals and other customary closing conditions.
"We look forward to welcoming the 725 Aeyon employees whose deep experience and expertise in government transformation has meaningfully contributed to the missions of U.S. Federal Government organizations," said Stephanie Mango, President, CGI Federal. "CGI and Aeyon share the same values and culture, and the combination of our firms further strengthens our position as a partner of choice for end-to-end services and mission-critical solutions across the U.S. Government."
Aeyon President and CEO, Sunny Singh, commented, "By joining forces with CGI, our clients will benefit significantly from their access to new and complementary global capabilities, greater scale and opportunities to enhance and broaden their mission impact; and for our employees the opportunities to advance their careers with an industry leader are also significant. We are thrilled to combine our capabilities, strengthen our offerings and advance our history of delivering innovative, trusted digital transformation, data, and intelligent automation services and solutions to our clients."
"Together, CGI and Aeyon are a great cultural fit—we share a strong commitment to client missions and our employees and our communities as well as a reputation for delivery excellence and innovation based on deep domain knowledge and technical expertise," said Horace Blackman, Senior Vice-President, CGI Federal Defense and Intelligence. "Our talented consultants are the backbone of our business and we are excited to embrace the world-class Aeyon team members as part of the CGI family."
In the U.S., CGI has consultants and professionals located in 80 offices organized through a metro market proximity model and supported by the depth of the company's global presence, end-to-end range of services and solutions, and insights to deliver value locally.
Aeyon is backed by Enlightenment Capital, a private investment firm that makes control and strategic, non-control investments in middle market companies in the Aerospace, Defense, Government & Technology (ADG&T) sector.
About CGI Federal
CGI Federal (CGI), a wholly owned U.S. operating subsidiary of CGI Inc., is dedicated to partnering with federal agencies to provide solutions for defense, civilian, healthcare, justice, intelligence, and international affairs missions. Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2023 reported revenue is CA$14.30 billion and CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com
Forward-looking information and statements
This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and the discontinuation of major interest rate benchmarks and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI's annual and quarterly MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual and quarterly MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.
SOURCE CGI Inc.
For more information: Investors, Kevin Linder, Senior Vice-President, Investor Relations, [email protected], +1 905-973-8363; Global Media, Andrée-Anne Pelletier, Manager, Media Relations, [email protected], +1 438-468-9118
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