CGI (GIB) acquires Harwell to expand its financial services unit – June 1, 2022

Computer graphicsit is (GIB Free Report), a subsidiary of CGI France SAS, has finalized the acquisition of Harwell Management to develop its financial services segment. Based in France, Harwell Management is a management consulting firm with approximately 150 employees who will join CGI’s Business Consulting unit in France. The CGI Business Consulting unit already has 800 employees.

With this acquisition, CGI intends to meet the growing demand for management consulting services on a global scale. By Intelligence of Mordor report, the management consulting services market is expected to grow at a CAGR of over 5.5% between 2021 and 2026.

The acquisition of Harwell will help CGI provide comprehensive consulting services to its global client base.

The acquisition of Harwell will expand the company’s financial services offerings in areas such as retail banking, corporate and investment banking, capital markets, insurance and mutual health, as well as other specialized financial services such as leasing and personal financing.

CGI specializes in providing a wide range of services, including business consulting, systems integration, IT and applications. The Business Consulting segment focuses on ways to improve clients’ business agility and manage change.

CGI has approximately 84,000 consultants in more than 400 locations around the world, enabling clients to solve complex challenges.

CGI last year announcement the acquisition of Cognicase Management Consulting to expand its operations in Spain and strengthen the company’s customer proximity model. Cognicase Management offers technology and management consulting services and solutions to its clients to accelerate their digitization.

The customer proximity model organizes business within metropolitan markets, enabling the proactive delivery of innovative services and solutions by gaining deep insight into customer businesses.

CGI shares have lost 4.7% over the past year, compared to the industry’s 1.4% decline.

Zacks Ranking and Stocks to Consider

CGI currently has a Zacks rank of #3 (Hold).

Some top-ranked stocks in the broader tech 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), while Vishay Intertechnology has a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

The Zacks consensus estimate for InterDigital’s earnings in 2022 is pegged at $3.28 per share, up 43.9% over the past 60 days. The long-term earnings growth rate is expected to be 15%.

InterDigital’s earnings have exceeded the Zacks consensus estimate for the past four quarters, averaging 141.13%. Shares of IDCC have fallen 20.8% over the past year.

Zacks’ consensus estimate for Vishay Intertechnology’s earnings in 2022 is pegged at $2.68 per share, up 10.3% over the past 60 days. The long-term earnings growth rate is expected to be 22.7%.

Vishay Intertechnology’s earnings have exceeded the Zacks consensus estimate for the past four quarters, averaging 4.96%. Shares of VSH are down 13.6% over the past year.

Zacks’ consensus estimate for Avnet’s fiscal 2022 earnings is pegged at $6.83 per share, up 20.5% over the past 60 days. The long-term earnings growth rate is expected to be 37.2%.

Avnet’s earnings have exceeded the Zacks consensus estimate for the past four quarters, averaging 21.22%. Avnet’s shares have risen 9.6% over the past year.