Global technology giant CGI has acquired Collaborative Consulting, a Boston-based IT consultancy with nearly 400 professionals.
Collaborative Consulting was founded in 1999 by William Robichaud, who, after over 15 years in the consulting industry, believed there was a way to provide better IT consulting services. Under his direction the IT consultancy grew to its current team of approximately 400 professionals, operating from offices in Boston (headquarters), Wisconsin, Maine and New Jersey. The firm provides a range of services that help organisations improve their technology performance, including Digital Strategy, Information Management, Systems Implementation, IT-Infrastructure, Cloud Solutions and IT-Support.
Last week Robichaud, who today still serves as President and CEO, unveiled that Collaborative Consulting has been acquired by CGI, a Canadian IT giant, with revenues of $10.7 billion globally (for the fiscal year ended September 30, 2016) one of the globe’s largest information technology players. The deal sees all employees of Collaborative Consulting join CGI’s ranks in the US, and adds around $76 million in fee income.
David L. Henderson, CGI’s President of US Operations, says that the bolt on brings valuable skills, experience and deep relationships in a fast growing IT services segment, adding that it enables the firm to boost its digital technology and information management offerings to clients. The move will predominantly benefits CGI’s operations in the country’s Northeast region: “The combination with Collaborative will have a significant positive impact on CGI’s footprint in the Boston metro area as well as the surrounding New England region, while acting as a catalyst for future organic growth for the overall US business, contributing to both our high-end consulting offerings while adding to our onshore delivery options.”
George D. Schindler, President and Chief Executive Officer of CGI, adds, “Collaborative Consulting brings both unique local relationships and deep industry experience to the CGI global platform.”
IT consultancy deal space
Deal activity in the IT consultancy space has been heating up in recent months, on the back of the growing demand for digital technology services. Three of CGI’s larger rivals, Atos, Capgemini and Accenture, have of late also been active with M&A in the North American market. Accenture for instance picked up US-based cyber consultant Defense Point Security, French-origin Atos acquired Anthelio Healthcare Solutions for $275 million, while Capgemini last year completed a massive move with the purchase of Igate, a deal which saw North America become the firm’s largest region in terms of size.