CGI is acquiring TeraThink, a federal government-focused information technology and management firm from Reston, Virginia. The deal is expected to close this month. Financial terms were not disclosed.
This M&A deal 164 that ChannelE2E has covered so far in 2020. The pace of deals has slowed a bit since the coronavirus pandemic emerged, but overall deal volume remains reasonable steady. See the complete M&A deal list here.
Founded in 2002, TeraThink provides digitization, enterprise finance, risk management, and data analytics services to the U.S. federal government. The company has approximately 250 employees.
CGI Federal's business gains consulting expertise across application development and management services. CGI Federal is a wholly-owned subsidiary of CGI, which works with federal agencies to provide solutions for defense, civilian, healthcare and intelligence missions.
Executive Reactions
George D. Schindler, president and CEO of CGI, offered this perspective on the deal:
"Through combined portfolios, we strengthen our capabilities and broaden our offerings to meet the growing digitization needs of federal agencies."
Tim Hurlebaus, president of CGI Federal, added:
“TeraThink and CGI Federal share a culture of delivering quality services, addressing evolving needs in partnership with our clients, and maintaining a track record of high client satisfaction and longevity. We look forward to welcoming the TeraThink members to the CGI team.”
CGI’s Acquisition Timeline
CGI employs around 74,000 people across its operations in Canada, the United States, and Europe.
In March of 2019, the business bought Swedish IT consulting firm Acando. In 2017, CGI made four strategic acquisitions.
M&A in the government IT solutions provider market has been steady. Here's a complete deal list.
