CGI completes purchase of Novatec: European digital services growth strategy
CGI has acquired Novatec, adding over 300 IT experts from Germany and Spain. This enhances CGI's Stuttgart and Granada presence, increases its IP portfolio, and provides cultural fit. The acquisition positions CGI as a more competitive player in the European digital services market.
Geographic and market reach
CGI has finalized the acquisition of Novatec, a leading digital services company with significant presence in Germany and Spain. Founded in 1996, Novatec brings with it over 300 IT and consulting professionals located in eight offices in Germany, primarily in the Stuttgart metropolitan area, and Granada, Spain. This strategic purchase further enhances CGI's presence in the automotive, manufacturing, and financial services industry's key markets, allowing the company to better serve high-value customers in these segments.
The Stuttgart region, renowned for its cluster of major auto and industrial sectors, is particularly prized. From expansion in this region, CGI can deliver localized service and support to these key industries, now more technologically oriented than ever. The Granada, Spain, office introduces nearshore delivery capability, providing cost-efficient resources for European customers and further extending CGI's delivery presence in the region.
Intellectual property and AI capabilities
The acquisition significantly strengthens CGI's intellectual property assets with Novatec's application performance management offerings. The software plays a critical role in optimizing complex hybrid cloud infrastructures and optimizing application performance, both of which are becoming increasingly front-of-mind issues for companies as they adopt AI technologies. The increased technical capabilities should improve service margins and allow clients to have more sophisticated and effective solutions.
Novatec's technical proficiency in cloud products, agile products, and software development is easily compatible with the existing offerings at CGI. Cross-selling opportunities and technical synergy induce CGI to be able to deliver integrated digital innovation services, aligning with changing client needs for the automotive, manufacturing, and financial services industries. The Novatec's IP acquisition would lead to more client satisfaction as well as enhanced market competitiveness.
Cultural alignment and integration
The cultural fit between CGI and Novatec, established by shared values of "results-oriented intrapreneurship" and client accountability, means a holistic due diligence process with a focus on human capital. It facilitates greater chances of successful integration and talent retention necessary to ensure service quality and client relations.
The emphasis on values and cultural fit indicates that CGI is committed to a seamless integration, ensuring that Novatec's skill sets and customer base are leveraged to the fullest. This approach is necessary to gain the maximum return of the acquisition and achieve long-term success in the highly competitive European digital services market.
Future outlook
The acquisition solidifies CGI's competitive position in the European IT services sector across the automotive, manufacturing, and financial services sectors. The extended footprint in the Stuttgart region and the acquisition of nearshore presence in Granada, Spain, further strengthen CGI's ability to support multi-national clients that have intricate European operations. Technology synergies in cloud, software creation, and artificial intelligence deployment initiatives position CGI to meet growing digital transformation requirements of its clients, supporting long-term growth and leadership in the marketplace.
