Operator: Your next question comes from Divya Goyal from Scotiabank.
Divya Goyal: Congratulations on the quarter here. I wanted to actually get some color on the broader M&A outlook. I know 2022 was a good M&A year for the company and you have certain targets built up. So if you can provide some M&A outlook and how are you broadly seeing the trends in the public versus the private targets out there?
George Schindler: The pipeline does remain strong for M&A. And we’ve included more IP related firms in that pipeline. And actually, even several captives that are also in that pipeline. So in general, the deals we’re now looking at are larger. So, that’s certainly good news. It’s a focus we’ve had on that pipeline. Market is very fragmented. But getting those larger deals takes a little more time. And it’s filled with pipeline mix of both public and private firms and mix of European firms and North American firms. So it’s pretty balanced where operation is. I will tell you, though, it’s €“ go back to the principles of CGI, it’s right company, right place, right time. And certainly the time is right for us. And that’s why we’ve allocated the capital to this in our plan.
But we found some that were at the right price, but after due diligence, they weren’t the right company. And so, that operational discipline is going to be key to achieving what we see as the long term accretion, not just the short term accretion, but the long term accretion of these mergers because it’s really about building the long term profitable growth of CGI. Valuations are right now all over the map. So I would say patience is key in our operational discipline. But we have the capital, we have the appetite, we have the pipeline. You can assured that we’ll be diligent in making the right calls.
Divya Goyal: Just on that valuations that you mentioned, are you seeing a major variance in the valuations between the public and the private sector?
George Schindler: It’d be hard to say that in general. Particularly on the private side, we see valuations all over the map, and so there isn’t that tight correlation, I would say, just given some of the volatility even in the public firms. You don’t have that anchor that you had in the past. Some of that can be very good if you find the right company.
Divya Goyal: Just one more question on this M&A discussion here. So, we did see that your integration expenses, obviously, have gone up recently over the past few quarters. And it does make sense with all the acquisitions you’ve been doing. And given the M&A pipeline continues to stay strong, what is the best way for us, if you can guide us from a modeling standpoint as to how can we think about that bit of the expense line?
George Schindler: It’s a good question. It really varies, again, by the company that we’re bringing in and also the geography, right? So, some of that integration costs can be a little bit higher, in certain geographies be a little bit lower. For example, when we do the next one in the United States, it’s a little bit lower. So it’s hard for me to quantify that for you. It’s why we break it out and we show it to you with and without
Operator: Your next question comes from Steven Li with Raymond James.
Steven Li: On the margins. I know margin was lower, and so there’s some dilution. And you mentioned travel was up. But for the full year, George, are you still expecting some modest expansion year-over-year?
