CGI NO LONGER IN NEGOTIATIONS WITH TELEGLOBE FOR OUTSOURCING AGREEMENT
Following requests for information, CGI Group Inc. (CGI) (TSX: GIB.A; NYSE: GIB) wishes to inform its stakeholders that it is no longer in negotiations with Teleglobe at this time regarding a potential IS/IT outsourcing contract. On March 18, both companies had announced the signing of a memorandum of understanding for the management and operation of Teleglobe's processing infrastructure.
For CGI, the potential agreement was valued at between CDN$125-150 million over an expected term of seven years. CGI did not provide any billable services to Teleglobe following the signing of this memorandum of understanding. Since a formal contract was never signed, the potential value of the agreement was included neither in CGI's financial guidance for fiscal 2002, nor in its backlog, currently valued at CDN$10.7 billion.
Founded in 1976, CGI is the fourth largest independent information technology services firm in North America, based on its headcount of 13,700 professionals. CGI's annualized revenue run-rate totals CDN$2.1 billion (US$1.3 billion). CGI's order backlog currently totals CDN$10.7 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.ca.
All statements in this press release that do not directly and exclusively relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. 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 commissions, on the Registration Statement on Form F-4 filed with the SEC in connection with the acquisition of IMRglobal and with the Forms 10-K and 10-Q of IMRglobal filed with the SEC for the periods ended December 31, 2000 and March 31, 2001 respectively. All of the risk factors included in these filed documents are included here by reference. CGI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information:
Vice-president, investor relations
Director, investor relations
Director, media relations