11:55 AM EDT, 03/31/2025 (MT Newswires) -- (Updates with National Bank comments in paragraph 5, shares in the last paragraph)

CGI (GIB-A. TO, GIB), on Monday said it agreed to buy Apside, a France-based digital and engineering services firm, for an undisclosed price.

The technology and consulting company said the agreement was signed with Apside's main shareholders, Siparex and investments companies of Credit Agricole Group.

"The combination of CGI and Apside would contribute strongly to the expansion of CGI in France and would significantly strengthen our capabilities, particularly across manufacturing and financial services. ...This merger would also enable us to expand our portfolio of end-to-end services by integrating engineering services," said President of CGI's France and Luxembourg operations, Caroline de Grandmaison.

The deal is expected to close in June.

National Bank Financial said CGI's move is consistent with its long-standing investment thesis that CGI would ramp up its pace of acquisitions under its new leadership. "When including CGI's recent offering of senior notes, we estimate CGI still has about $3.3 billion in available liquidity remaining alongside a low leverage ratio; thus, we expect the accelerated M&A pace to continue." The bank maintained CGI's outperform rating and target of $185.

Separately, CGI announced the upgrade of Ventura County Financial Management System (VCFMS), with a transition to the CGI Advantage Cloud.

"The updated VCFMS will deliver a streamlined user interface, enhancing accessibility and efficiency outcomes for end users," said Senior Vice-President of CGI's U.S. West operations, Joanna Robinson.

Shares of the company were last seen up $1.33 to $141.86 on the Toronto Stock Exchange.

Price: 141.85, Change: +1.32, Percent Change: +0.94