11:38 AM EST, 12/12/2024 (MT Newswires) -- CGI announced after market close on Wednesday that it had signed an equity purchase agreement to acquire Daugherty, a St. Louis-based professional services firm serving Fortune 500 customers in financial services, healthcare, communications, and retail and manufacturing. Daugherty specializes in AI, data analytics, strategic IT consulting, and business advisory services. The transaction is expected to close in Q1/FY25 (December). CGI did not disclose any financial details.

RBC, which is Neutral on the tuck-in acquisition, estimates that CGI paid US$275 million for Daugherty which it calculates generates US$250 million annual revenue. The Daugherty acquisition is also estimated to be 2% accretive to CGI's annual adj. EPS, RBC said.

CGI is rated Outperform, with a $178 target.

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