Benzinga | Feb 19, 2021 09:09AM EST

CGI To Buyback 4.2M Shares From CDPQ

* CGI Inc (NYSE: GIB) inked an agreement with institutional investor Caisse de d?p?t et placement du Qu?bec (CDPQ) to buy back 4.2 million shares for C$95.13 per share. The buyback price signifies a 3% discount to CGI's Thursday closing price on the Toronto Stock Exchange.

* Post the sale, CDPQ will continue to hold 10.9% of CGI's total outstanding shares.

* "With a solid balance sheet and strong cash generation combined with more than $3.2 billion in liquidity at the end of December 2020, we remain very well-positioned to continue executing our Build and Buy profitable growth strategy," said CGI Board Co-Chair Julie Godin.

* CGI's revenue stood flattish at C$3.02 billion in the first quarter of FY20. Bookings improved 23.5% to C$3.4 billion, and operating cash flow rose 28.4% to C$597.5 million.

* Price action: GIB shares closed 1.07% lower at $77.36 Thursday.