CGI CLOSES ACQUISITION OF UAB
CGI Group Inc. (CGI) (TSX: GIB.A; NYSE: GIB) today announced the closing of the acquisition of the Underwriters Adjustment Bureau Ltd. (UAB) with an annualized revenue run rate of approximately CDN$100 million. The purchase price was CDN$53 million in cash and the transaction is expected to be accretive to CGI's fiscal 2003 earnings. The acquisition of UAB significantly expands the capabilities of CGI's insurance and business process services units, adding 1,300 professionals to its ranks. The acquisition was initially announced on November 12, 2002.
Founded in 1951, UAB is Canada's only "One-Stop-Risk-Shop", providing claims management, underwriting and actuarial services for the property and casualty (P&C) insurance industry, as well as attending physician statements, investigation and surveillance services, real estate management services and pre-employment services to life and health insurers.
Michael Roach, president and chief operating officer for CGI added: "I would like to warmly welcome our new professionals to the team. Collectively, we have the right mix of knowledgeable people, solid solutions and strong client relationships to continue to evolve our insurance business process outsourcing unit. It is our intention to be the IT and BPO partner of choice for the insurance industry."
Founded in 1976, CGI is the fourth largest independent information technology services firm in North America, based on its headcount. CGI and its affiliated companies employ more than 16,000 professionals. CGI's annualized revenue run-rate totals CDN$2.3 billion (US$1.5 billion). As at September 30, 2002, CGI's order backlog totalled CDN$10.4 billion (US$6.7 billion). CGI provides end-to-end IT services and business solutions to more than 3,000 clients worldwide from more than 60 offices. CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB). They are included in the TSX 100 Composite Index as well as the S&P/TSX Canadian Information Technology and Canadian MidCap Indices. Website: www.cgi.com
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.
For more information:
Vice-president, investor relations
Director, investor relations
Director, media relations