CGI (NYSE: GIB) (TSX: GIB.A) has entered into a new contract with Eltel, a leading European services provider specializing in the utilities sector, for the delivery of infrastructure, data center and application management services across Eltel’s IT operations in the Nordic region and Baltic states. Over the longer term, more of the countries in which Eltel is active are expected to be included in the contract.
As part of this contract, CGI will migrate Eltel’s data centers to its own data centers and consolidate the company’s IT environment. The five-year contract is valued at approximately 80 million Swedish Krona (CA$12.8 million).
Eltel is a supplier of technology services for critical infrastructure networks, known as Infranets. Its customers include telecoms operators and power companies. The company is undergoing an expansion phase, so scalable, flexible IT services are needed to make it easier to rapidly integrate—and realize the value of—acquired businesses. CGI’s modern infrastructure services, which include self-service options, proactive follow-up and shorter lead times, will facilitate Eltel’s efforts to futureproof its IT infrastructure.
“The possibility to order servers and services through a self-service portal will improve our efficiency and will save us both time and money” says Michael Langendorf, CIO at Eltel. “Centralizing our IT infrastructure will also give us better leverage for all our businesses and result in more stable and secure services, both for our customers and internally.”
“Our partnership with Eltel has involved their Swedish business so far,” said Pär Fors, Senior Vice-President of CGI’s Swedish business unit. “We now are looking forward to supporting Eltel’s development and expansion at a much broader level and contributing to a faster go-to-market. Eltel has high ambitions and is at the cutting edge of development, so I am not at all surprised that it is one of the first companies of its kind to use our modernized infrastructure services.”
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 65,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as 150 IP-based services and solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). 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 and quarterly Management’s Discussion and Analysis (“MD&A”) and in other public disclosure documents filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), 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.
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