CGI ANNOUNCES CLOSING OF APG SOLUTIONS & TECHNOLOGIES AND C.U. PROCESSING INC. TRANSACTIONS
CGI Group Inc. (TSE: GIB.A; NYSE: GIB) today announced that it has completed the acquisitions of APG Technologies & Solutions, effective September 1, 2000 and of C.U. Processing Inc., effective October 4, 2000.
APG Technologies & Solutions is an information technology consulting firm specializing in the implementation of enterprise resource planning (ERP) packages, systems evolution and knowledge management. The acquisition was paid for with a mix of cash and CGI shares, for a consideration of CDN$68.5 million.
C.U. Processing is a Detroit-based provider of information management systems primarily to U.S. credit unions. C.U. Processing was acquired for a cash consideration of CDN$37 million. C.U. Processing provides its clients with a range of financial systems and services and operates eight regional data centres. The Company has presence in Toronto (Canada), as well as in the states of Illinois, Michigan, Ohio, Tennessee and Washington.
"We are pleased to welcome the highly specialized employees of APG and C.U. Processing to CGI," said Serge Godin, CGI's chairman, president and CEO. "These two acquisitions fit perfectly into the Company's strategic plan and are in line with our objective to play a role as consolidator in the North American IT services industry."
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 approximately 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 100 index as well as the S&P/TSE Canadian Information Technology index. 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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