BCE MOBILE AND CGI GROUP CLOSE 10-YEAR FULL IT SERVICES AGREEMENT
BCE Mobile Communications Inc. (Bell Mobility) and CGI Group Inc. today announced the closing of a ten-year, renewable agreement under which CGI will provide Bell Mobility with the wireless carrier's information technology services.
The agreement, which involves full IT outsourcing services, is effective May 1, 1999. CGI expects the contract to generate CDN$100 million for CGI in the first 12 months, with revenue totalling approximately CDN$750 million over the ten-year term. The size of the contract in subsequent years will be dependent on Bell Mobility's growth and specific future requirements.
"We expect to realize significant cost savings over the life of this partnership," said Randall Reynolds, President and CEO of Bell Mobility. "Working with CGI opens up the possibility of more synergies across the BCE group. Together, we will enhance the efficiency of our IT operations and that, in turn, will enable us to serve our customers better."
Jean Brassard, President and COO of CGI, said: "We are delighted to be Bell Mobility's long-term IT partner. The wireless telecommunications industry is undergoing dynamic growth around the world and CGI, with strong expertise in both wireline and wireless, is strongly positioned in this area. We already have several wireless clients in South America and elsewhere and look forward to serving the mission-critical IT needs of Bell Mobility. In addition, we are pleased to welcome a team of approximately 450 highly skilled individuals who will be joining us from Bell Mobility. We are looking forward to their contribution to CGI's continued growth and the success of our clients."
BCE Mobile's subsidiaries, operating under the Bell Mobility banner, provide a full range of wireless communications services to 2.1 million Canadians, offering cellular, PCS, one- and two-way paging, data, airline passenger and satellite communications services, as well as the sale of customer hardware and private radio systems. BCE Mobile's shares are traded on the Toronto, Montreal and New York stock exchanges (ticker symbol: BCX).
CGI is the largest independent information technology consulting firm in Canada and the fifth largest in North America, based on its revenue run rate of $1.5 billion. The company's order backlog totals approximately $7.5 billion. CGI has 9,000 professionals and provides end-to-end IT services and business solutions to 2,000 clients in Canada, the United States and 20 countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (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., and BCE Mobile Inc. or in any document filed by the Companies with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the companies, 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 Companies' 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 companies' 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 Companies' Annual Report.
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