CGI Inc. announced the acquisition of Online Business Systems, an IT consulting firm headquartered in Winnipeg, on December 3 2025. The deal brings more than 350 highly skilled professionals into CGI’s global delivery network, expanding the company’s presence in Canada and the United States and reinforcing its Build‑and‑Buy strategy.
Michael Godin, President of CGI Canada, said the move “significantly strengthens our presence in Winnipeg and enhances our portfolio of services and solutions.” Godin is not the CEO of CGI; the company’s chief executive is François Boulanger. The quote underscores the strategic intent to deepen local expertise while leveraging CGI’s global capabilities.
The acquisition is positioned to deepen CGI’s capabilities in digital transformation, cybersecurity and artificial intelligence. By adding Online Business Systems’ talent, CGI aims to accelerate its transition to an AI‑enabled managed services platform, broaden its managed services and IP solutions mix, and support recurring revenue and margin growth in a competitive market.
CGI reported fiscal 2025 revenue of $15.91 billion. In the fourth quarter, the company posted revenue of $4.01 billion, up 9.7% year‑over‑year, and an adjusted diluted EPS of $2.13, beating analyst expectations of $1.51 by $0.62 (a 41% beat). The earnings beat was driven by strong demand for AI‑embedded managed services and disciplined cost management, offsetting a 12.9% decline in earnings before income taxes and a 9.5% net earnings margin, which fell from 11.9% the prior year due to restructuring and acquisition‑related costs. Adjusted EBIT margin rose to 16.6% from 15.8%, reflecting the higher mix of high‑margin AI contracts and operational leverage.
Market reaction to the earnings beat was mixed. While the strong results and EPS beat generated positive sentiment, analysts such as Jefferies downgraded CGI’s rating from Buy to Hold, citing concerns about lagging organic growth relative to peers. The downgrade highlights investor focus on the company’s ability to sustain growth momentum beyond the current AI‑enabled service expansion.
The acquisition and the Q4 performance signal CGI’s continued emphasis on high‑growth, high‑margin services. By integrating Online Business Systems, CGI strengthens its competitive position in digital transformation and AI, while the earnings beat demonstrates effective execution of its Build‑and‑Buy strategy. The company’s focus on recurring revenue and margin expansion, coupled with disciplined cost control, positions it to navigate headwinds such as restructuring costs and competitive pricing pressures while pursuing new growth opportunities in AI and managed services.
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