CGI (GIB) Boosts Portfolio with Acquisition of Celero Credit Union

CGI Group GIB recently announced the acquisition of Celero’s savings and credit operations in Canada, expanding its core and digital banking offerings into the Canadian savings and credit sector.

The move includes master agreements for managed services, core banking, digital banking and related IT services, strengthening CGI’s position in the Canadian market.

With the acquisition, CGI will integrate the managed services businesses of more than 90 credit unions, creating 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 to all customers while benefiting from CGI’s culture of ownership and career development opportunities.

With this acquisition, CGI enhances its 30-year tradition of serving Canadian credit unions with innovative digital solutions and professional services.

CGI focuses on growing clientele

The latest move bodes well for CGI’s continued focus on expanding its core and digital banking solutions and strengthening its presence in the Canadian credit union sector through acquisitions.

The acquisition of Momentum Consulting by the company, a US IT and business consulting firm, is a big plus. The buyout has benefited GIB by expanding its digital transformation, data analytics and managed services capabilities by 175 specialists.

In addition to acquisitions, CGI’s growing client base and portfolio strength are expected to drive revenue growth. GIB’s strong partner base, which includes Munich Re, Nokia NOKs ExxonMobil XOM and Amazon AMZN was a key catalyst.

In June, CGI renewed its partnership with Exxon Mobil to enhance payment and loyalty services in Europe and Asia Pacific using CGI PayPartner360. The solution has been used by more than 13,000 gas stations and 10 million active users worldwide.

CGI and Nokia also deepened their collaboration to integrate 5G private wireless network technology into CGI’s business services, providing a pioneering 5G testbed in Northern Ireland to support the Smart Nano NI consortium’s smart manufacturing initiatives.

CGI’s partnership with Amazon’s cloud computing platform, Amazon Web Services (AWS), remains noteworthy. Under the terms, the company will provide a flexible, cloud-ready enterprise payments solution, CGI All Payments on AWS, to streamline payments processes for banks and provide scalability, ISO 20022 compliance, and cloud-based delivery.

However, this Zacks Rank #3 (Hold) company’s cautious spending and overall slow buying behavior have hurt its near-term prospects. You can see complete list of today’s Zacks #1 Rank stocks here.

Year to date, shares of the company have fallen 4.6%, while the overall Zacks Computer and Technology sector has returned 28.2%.

The Zacks Consensus Estimate for third-quarter fiscal 2024 revenues is $2.69 billion, down 0.27% year over year. The consensus estimate for third-quarter earnings is $1.40 per share, which is unchanged over the past 30 days.

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