CGI doubles global revenue thanks to Logica acquisition
Global technology services provider CGI has more than doubled its global revenue in its latest fiscal year, with total fee income jumping by 111% from $4.8 billion in F2012 to $10.1 billion in FY2013.
Shortly after the news broke, the shares of CGI (traded on the Toronto Stock Exchange) reached an all-time high.
In addition to the revenue increase, nearly all other indicators improved over the past financial year. The adjusted EBIT was $313.4 million, representing a margin of 12.7%. This compared to $114.1 million for the previous period (7.1%).
Net earnings after integration costs and tax swung from a loss of approximately $170 million into a profit of $141 million. On the financing side CGI realized to decrease the debt burden with $300 million and its days of sales outstanding (DSO) improved drastically – from an average of 74 to 49.
The strong results were driven for a large part by the acquisition of Logica. In May 2012, the Canadian group acquired the European IT service provider Logica for £1.2 billion.
"I am very pleased with the strong performance delivered throughout fiscal 2013" said Michael Roach, Chief Executive Officer of CGI. “After a full year, the Logica merger and successful execution of our integration program has, and will continue to yield significant benefits for our clients, employees and shareholders. Looking forward, we begin fiscal 2014 in an excellent position strategically, operationally and financially.”
CGI has approximately 72,000 employees working from offices in 40 countries, making it the fifth largest IT service provider in the world.
