Canada's CGI posts 52 percent jump in profit, eyes acquisitions
By Alastair Sharp
TORONTO (Reuters) - Canadian computer services provider CGI Group GIBa.TO posted a 52 percent rise in fourth-quarter profit on Thursday, and said it was looking at new buying opportunities as it completed the integration of Logica, which gives the company a major boost in Europe.
The Montreal-based company, which had lost the contract to manage last year's U.S. healthcare plan known as Obamacare after a botched launch, said it had since finished work on a range of state-based healthcare projects.
"We successfully completed the remaining U.S. healthcare exchange projects resulting in a notable performance improvement in the second half of the year," Chief Executive Michael Roach told analysts on a conference call.
He said CGI had improved its position with respect to U.S. federal government business despite ongoing industry-wide delays.
CGI, one of Canada's largest technology companies, has diversified its customer base thanks to acquisitions including the 2012 purchase of UK-based Logica, for which integrations costs have now been fully accounted for.
It gets roughly a quarter of its revenue from the U.S., with 10 percent-plus contributions from Canada, Britain and France.
Roach said the company could look for acquisitions to grow its U.S. and UK commercial businesses, to consolidate a fragmented market in Australia, and to grow in Eastern Europe.
The company on Wednesday said it would team up with Dell to offer cloud-based solutions to governments and commercial clients worldwide. Continued...