CGI, currently serving 2.5 million Canadian credit union members with its proprietary banking services, will now serve an additional client base of 2.5 million U.S.-based members
CGI announced today that it has signed a letter of intent for the acquisition of Detroit-based C.U. Processing, a provider of information management systems primarily to U.S. credit unions. C.U. Processing will be acquired for a cash consideration of approximately CDN$ 37 million. The transaction is expected to close on August 31, 2000.
"We are delighted to welcome C.U Processing's 160 professionals within CGI," said Serge Godin, CGI's chairman and CEO. "With operations in 14 U.S. locations and some 300 clients in the financial services sector, C.U. Processing establishes CGI as a strategic IT partner to the U.S. credit union community. They also bring highly valuable IT solutions and their skilled staff will contribute to our leading expertise in meeting the needs of financial services clients." With this transaction, CGI now serves a total of five million credit union members, equally distributed across Canada and the U.S.
David Palmer, C.U. Processing's chairman and CEO, who will join CGI as senior vice-president and general manager, Credit Union Processing Services in the United States, added: "We are extremely pleased about joining CGI. We feel that combining our strengths will allow us to significantly increase our critical mass in a rapidly consolidating North American market place. Leveraging both companies' solutions and skill sets will allow us to present a compelling offering to our credit union clients all across Canada and the U.S."
C.U. Processing is a privately held company founded in 1984. It provides credit union clients with a range of financial systems and services and operates eight regional data centres. Its operations are located in 14 U.S. cities, mostly in the U.S. Midwest and West, including the states of Illinois, Michigan, Ohio, Tennessee, and Washington. The Company also has a presence in Toronto, Canada.
For its latest fiscal year, C.U. Processing recorded revenues of more than CDN$35 million, 95% of which was generated in the U.S., with the remaining 5% in Canada. With this acquisition, CGI now generates approximately CDN$100 million in annual revenues serving over 2,000 credit union clients across Canada and the U.S.
About CGI
Founded in 1976, CGI is the largest independent Canadian information technology consulting firm and the fifth largest in North America, based on its revenue run rate of CDN$1.4 billion. CGI's order backlog totals CDN$7.0 billion. CGI has close to 10,000 professionals and provides end-to-end IT services and business solutions to 2,500 clients in Canada, the United States and more than 20 countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto exchange (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 100 indexes. Web site: www.cgi.ca
All statements contained in this or any other press release of CGI Group Inc., or in any document filed by the Company with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the Company, that do not directly and exclusively relate to historical facts, constitute "forward looking statements" within the meaning of the U.S. Private Securities Litigation Report Act of 1995. These statements represent the Company's expectations and beliefs, and no assurance can be given that the results described in such statements will be achieved.
This press release may contain forward looking statements that involve a number of risks and uncertainties, including statements regarding the outlook for the company's business and results of operations. There are a number of factors that could cause actual results to differ materially from those indicated. Such factors include, without limitation, the various factors set forth in the Company's annual report or Form 40F filed with the SEC and its Annual Information Form filed with Canadian securities commissions, which important factors are included here by reference.
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For more information:
CGI
Ronald White
Director, Investor Relations
(514) 841-3200
ronald.white@cgi.ca
