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CGI acquires IT services provider Momentum

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Canada’s CGI has acquired Momentum Consulting, a small IT services provider headquartered near Miami.

Momentum Consulting’s main specialty is working with big companies to implement expensive software products such as SAP and Snowflake. It also works on public cloud projects like Azure environment setups.

The firm’s other core area of focus is analytics. It can set up business intelligence dashboards for a company to help its leadership team track business metrics such as employee retention trends.

CGI’s move to buy Momentum Consulting is mainly about office space.

Montreal-headquartered CGI is a leading IT services provider with offices in more than 400 locations around the world. The reason the firm built up such an extensive real-estate footprint is that its clients are big multinationals with a presence in multiple markets. 

Thanks to its network of offices, CGI typically has employees wherever its client companies have employees. That means CGI can avoid issues like time zone differences and language barriers when working on customer projects, which is a major  component of its sales pitch.

With the acquisition of Momentum Consulting, CGI is gaining an office in Miami Lakes, a small town located about 40 minutes’ drive from Miami. 

Many large companies have a presence in Miami and quite a few of those companies are CGI clients. Now that it has a local office, the firm can support those clients more effectively and, if necessary, quickly send over its employees to their offices.

It’s also possible Momentum Consulting will add new logos to CGI’s customer base. Even if Momentum Consulting manages a small aspect of a Fortune 500’s IT operations, that relationship can potentially be expanded over time by CGI into a larger deal.

Plus, the IT professionals CGI is gaining through the acquisition can also help it carry out client projects outside the Miami region. There’s no reason a Snowflake or SAP expert based in Miami Lakes can’t help a New York-based client with a software rollout project, assuming the client doesn’t insist on working with regional or on-premises staff.