IT and business consulting services firm CGI has announced it intends to acquire TeraThink, an IT and management consulting firm providing digitization, enterprise finance, risk management and data analytics services to the U.S. federal government.
The companies have signed an agreement to proceed with the transaction, which is expected to close by the end of March. The merger is expected to increase the scale of enterprise applications support CGI Federal provides to all three branches of government.
“TeraThink and its approximately 250 professionals have made significant contributions for their federal government clients,” said George Schindler, CGI president and CEO “Through combined portfolios, we strengthen our capabilities and broaden our offerings to meet the growing digitization needs of federal agencies.”
This merger aims to strengthen CGI Federal’s consulting expertise, and should expand its enterprise application development and management services. CGI reports the goal is to combine TeraThink’s agile enablement, application development, and data analytics capabilities with CGI’s Federal’s breadth of IT services, to enhance offerings available to federal agencies.
“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,” said Tim Hurlebaus, president CGI Federal. “We look forward to welcoming the TeraThink members to the CGI team.”
The merger represents another milestone event for TeraThink, its employees and leadership, said Kevin DeSanto, a managing director at investment banking firm KippsDeSanto & Co.
“The TeraThink team purpose-built a leading digital transformation partner for the federal government, representing a capability set that has tremendous relevance in today’s market,” he said. “In addition, this transaction is a strong statement as to the value created when TeraThink and Dominion merged together in 2017.”