CGI and APG Solutions & Technologies announced today that they have signed an agreement whereby CGI will acquire APG, an information technology consulting firm specializing in the implementation of enterprise resource planning (ERP) packages, systems evolution, electronic commerce and knowledge management.
The acquisition will be paid for with a mix of CGI shares and cash, for a consideration of CDN$68.5Â million. The acquisition will be accretive to CGI's results. The closing of the agreement is conditional upon regulatory approval. Headquartered in Montreal, APG employs over 750Â people at seven offices located mainly in Canada, and its annualized revenues total close to CDN$90Â million.
"We are truly pleased to welcome APG's highly qualified personnel," said Serge Godin, CGI's chairman of the board and chief executive officer. "By pooling our strengths and complementary resources, APG and CGI will be able to enhance their position in the Canadian market, which is currently experiencing a phase of consolidation. Among other benefits, this transaction allows us to increase our critical mass in the financial and telecom services industries."
André Poirier, president and chief executive officer at APG, added, "Our two companies share the same philosophy focusing on quality and benefit from ISO 9001 certification. By joining forces we will be able to further extend our range of services and provide our clients with greater added value. Finally, this transaction allows us to offer our professionals a greater range of challenges."
With APG, CGI will further broaden its roster of well established clients, since APG's clientele includes some 250 organizations such as the Bank of Montreal, Nortel Networks, Canada Post, Mobil Oil, Air Canada and the Department of National Defence. APG recently doubled its size, with the acquisition of Uniglobal in the spring of 2000. The company is present across Canada, with offices in Québec City, Montreal, Ottawa, Toronto, Edmonton and Calgary. It generates 46% of its revenues in Quebec, 30% in Ontario, 12% in Western Canada and 12% internationally.
About APG
APG Solutions & Technologies is an information technology consulting firm specializing in the following four key sectors: implementation of ERP packages, application evolution, electronic commerce and knowledge management. The firm develops applications in many sectors, such as finance, human resources, Web-enabling applications (Internet, intranet, extranet), security (PKI) and data warehousing. APG's growth has been driven by solid strategic partnerships and an intensive R&D program aimed at developing complementary technologies and tools for implementing proven business solutions. Since its inception in 1986, the firm has grown aggressively in Canada and abroad. Established in Montreal, APG Solutions & Technologies employs more than 750 specialized consultants at seven regional offices, located mainly in Canada.
About CGI
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 CDN$7 billion. CGI has more than 9,500 professionals and provides end-to-end IT services and business solutions to over 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 300 Composite and TSE 100 indexes. 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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For more information:
CGI
Ronald White
Director, Investor Relations
(514) 841-3230Â
ronald.white@cgi.ca
APG
André Poirier
President and CEO
(514) 393-1477