CGI Group Inc. (CGI) (TSX: GIB.A; NYSE: GIB) announced today that it has completed the acquisition of Boston-based Apex Consulting Group Inc. (Apex) with revenues of US$4.0 million. The company was purchased for cash and shares. Apex is a business services, systems integration and consulting company with a focus on business process improvement and new technologies. Specializations include order entry/processing optimization, customer relationship management, Microsoft .Net and J2EE architecture and development, and IS management support.
Established in 1996, privately-held Apex currently employs 22 senior-level consultants who serve clients mostly in the retail, utility and financial services sectors. Clients include many significant New England companies, such as the two largest financial services firms, the largest defence firm in Massachusetts as well as National Grid, NEBS and Sovereign Bank. Apex is also the founder and primary sponsor of the New England Java Users Group (NEJUG), which is one of the largest Java user groups in the world, with over 2,600 members.
"We were at the stage in our growth whereby we wanted to bid for bigger and broader opportunities. Our clients were asking us to provide them with more services through a global delivery model. To do so, we sought a partner with whom we could grow. Not only do our services blend well with CGI's offering but they have operations in Canada and India. Now we can go back to our clients and add to what we are currently offering," said Steve Maienza, founder and president of Apex. Tom Stephanian, executive vice-president, added, "In addition to being able to offer more extensive solutions to our clients, we're looking forward to offering our business process improvement and architecture solutions to CGI's clients."
Joseph Saliba, president, USA and India for CGI added: "We are very pleased to welcome our new colleagues to CGI. Apex possesses an outstanding client list based on its solid reputation of delivering concrete results via its component-based approach to project methodology. With this acquisition, not only are we adding to our team of experts but we also have the opportunity of building deeper relationships with their existing clients."
CGI's Greater Boston operations are mostly dedicated to clients in the financial services sector. CGI's extensive experience in offering end-to-end services and solutions is based on work done with more than 800 insurance clients in US, Canada and Europe.
About CGI
Founded in 1976, CGI is the fifth largest independent information technology services firm in North America, based on its headcount. CGI and its affiliated companies employ 20,000 professionals. CGI's annualized revenue run-rate is CDN$2.8 billion (US$2.1 billion) and at July 29, 2003, CGI's order backlog was CDN$12.5 billion (US$ 9.1 billion). CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, United States and Europe. CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: www.cgi.com.
Forward-Looking Statements
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements represent CGI Group Inc.'s intentions, plans, expectations, and beliefs, and are subject to risks, uncertainties, and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements.
These factors include and are not restricted to the timing and size of contracts, acquisitions and other corporate developments; the ability to attract and retain qualified employees; market competition in the rapidly-evolving information technology industry; general economic and business conditions, foreign exchange and other risks identified in the Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s Annual Report or Form 40-F filed with the SEC, the Company's Annual Information Form filed with the Canadian securities authorities, as well as assumptions regarding the foregoing. The words "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", and similar expressions and variations thereof, identify certain of such forward-looking statements, which speak only as of the date on which they are made. In particular, statements relating to future revenue from outsourcing contracts are forward-looking statements. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
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CGI
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Julie Creed
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Ronald White
(514) 841-3230
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(514) 841-3430
