CGI Strengthens UK Presence with BJSS Acquisition

CGI (NYSE: GIB) (TSX: GIB.A) has completed its acquisition of BJSS, a leading UK-based technology and engineering consultancy, further deepening its presence across key commercial industries and the public sector. This strategic move aligns with CGI's goal to expand its consulting-led services and drive innovation in cloud, AI, data analytics, and software engineering for both commercial and public sector clients.

The acquisition brings 2,400 BJSS professionals into CGI's global network of 91,000 consultants and professionals, increasing CGI's UK workforce to over 8,500 employees. BJSS's team adds complementary skills and expertise that will enhance CGI's ability to deliver industry-leading technology solutions and advisory services. Tara McGeehan, President of CGI UK & Australia, stated that the combined expertise will strengthen CGI's capabilities to help clients navigate complex digital transformations, accelerate innovation, and achieve measurable outcomes aligned with their strategic goals.

BJSS's 2,400 professionals will bring complementary skills and experience to CGI's global network of 91,000 consultants and professionals, bringing the number of CGI employees located in the UK to over 8,500. The integration of BJSS into CGI's UK operations will enable expanded service offerings and deeper collaboration with clients, particularly in the retail, financial services, healthcare, energy, and public sectors.

The acquisition aligns perfectly with CGI's well-established "Build and Buy" strategy, through which the company has consistently expanded its global footprint while maintaining strong margins. CGI typically targets companies with complementary capabilities and cultural alignment, focusing on value creation through cross-selling opportunities rather than cost-cutting. Based on similar acquisitions in the IT consulting space, BJSS was likely valued at 1-1.5x revenue with EBITDA margins in the 12-15% range.

Particularly noteworthy is BJSS's strong presence in high-value sectors including retail, financial services, healthcare, energy, and public sectors. These industries represent significant digital transformation opportunities as they modernize legacy systems and implement AI-driven solutions. The UK public sector alone represents a multi-billion-pound opportunity as government agencies accelerate digital initiatives post-Brexit and post-pandemic.

From an integration perspective, CGI has demonstrated disciplined execution in previous acquisitions. Key success factors will include retaining BJSS's technical talent in a competitive labor market and harmonizing delivery methodologies while preserving BJSS's entrepreneurial culture. The immediate focus will likely be on cross-selling opportunities - introducing BJSS's engineering capabilities to CGI's existing UK clients while leveraging CGI's global delivery model for BJSS's client base.

For investors, this acquisition should enhance CGI's organic growth profile in the UK while potentially improving overall margins as the company shifts toward higher-value consulting services. While integration always carries execution risk, CGI's methodical approach and proven track record suggest this acquisition will likely contribute positively to earnings within 12-18 months while strengthening its competitive position against rivals like Accenture, Capgemini, and Cognizant in the UK market.



In conclusion, CGI's acquisition of BJSS represents a strategic expansion that adds 2,400 professionals to its UK operations, bringing its total UK workforce to 8,500. This move significantly strengthens CGI's position in one of Europe's most important IT services markets while enhancing its capabilities in high-growth areas including cloud, AI, data analytics, and software engineering. The acquisition aligns with CGI's well-established "Build and Buy" strategy, and investors can expect positive earnings contributions within 12-18 months as CGI integrates BJSS's expertise and expands its service offerings in key sectors.