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CGI enjoys big revenue spike as Logica acquisition starts to pay off

Michael Roach

Montreal: Canadian IT consultancy CGI posted 137% revenue growth in its second quarter of 2013, as its acquisition of Logica begins to bear fruit.

  • Revenue of Canadian $2.53 billion, up 137%
  • Bookings of $2.2 billion, up 180.8%
  • Backlog of $18.0 billion, up 37.4%
  • Net earnings of $175.9 million, excluding Logica integration costs, up from $105.7 million a year ago
  • Net earnings of $114.2 million, including integration costs

CGI says that it has expanded its Logica integration goals, increasing the annualized savings target from $300 million to $375 million by the end of fiscal 2014, completing the program a year earlier than originally planned. To realize these additional benefits, the firm will increase its investment from $400 million to $525 million over the integration period.

"I am very pleased with our overall performance and with the excellent progress we have achieved in restructuring and transforming our European and Asia Pacific operations," said Michael Roach, President and Chief Executive Officer.

"Working closely with our clients and our professionals we are seeing the business benefits of implementing our operating model as we trend to the upper end of our fiscal 2013 EPS accretion commitment of 25 to 30 percent before integration costs. We continue to identify and action opportunities to bring incremental value to our stakeholders."

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