CGI Group Inc. (NYSE: GIB; TSX: GIB.A), a leading provider of information technology and business process services, announced it has received an intent-to-award letter for the State of California’s Franchise Tax Board (FTB) Enterprise Data to Revenue (EDR) project. The contract will be valued at approximately $399 million for 5.5 years, with a five-year option for maintenance and operation valued at an additional $139 million. EDR will be a performance-based, benefits-funded contract where CGI is paid from a percentage of the increased revenues generated.
CGI’s innovative solution will support fundamental changes in FTB’s tax processing that will generate an estimated $2.8 billion in additional revenue for the State by 2016-2017, helping to narrow its substantial tax revenue gap.
The Franchise Tax Board’s key business goal to provide taxpayers and businesses with greater transparency is strengthened through a new EDR “taxpayer folder” which centralizes account status information and presents a common information view for both FTB staff and taxpayers. The new online approach modernizes the way taxpayers will be able to request extensions, make payments and find information. In addition, the secure Website will have expanded email, and online chat features.
“FTB has a well-deserved national reputation for using technology to make the taxpayer’s and the State’s jobs easier while taking maximum advantage of existing systems and data,” said Josetta Bull, CGI Vice-President and strategic account manager. “CGI is proud to support FTB in reducing California’s tax revenue gap while continuing to build public confidence in government.” CGI’s prior work for FTB includes a ground-breaking, multi-program effort to increase revenues that yielded $784 million in incremental benefits for the State from 1994-2003.
CGI’s new solution will deliver an innovative, faster and more efficient income tax returns processing system for both individuals and businesses in California, accelerating collections while minimizing fraud. In addition, this platform and solution approach is repeatable and CGI plans to promote it in other states, as governors across the country continue to struggle with record-breaking deficits.
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 31,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices and centers of excellence in Canada, the United States, Europe and Asia Pacific. As at December 31, CGI's annualized revenue was approximately C$4.5 billion and its order backlog was approximately C$13.1 billion. CGI shares are listed on the NYSE (GIB) and the TSX (GIB.A) and are included in both the Dow Jones Sustainability Index and the FTSE4Good Index. 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, and are “forward-looking information” within the meaning of Canadian securities laws. These statements and this information represent CGI’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 or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI’s Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), the Company’s Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), 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 or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information. You will find more information about the risks that could cause our actual results to differ significantly from our current expectations in the Risks and Uncertainties section.
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