CGI Group Inc. (NYSE: GIB, TSE:GIB.A) and CyberBranch Corporation announced today that they have signed an agreement whereby CGI has acquired CyberBranch, a subsidiary of Stanford Federal Credit Union of Palo Alto California. CyberBranch is an Internet and Intranet provider of leading edge technology to credit unions across North America.
CyberBranch brings CGI a suite of leading edge Web-based technology solutions, backed by a highly skilled team of professionals with the know-how and expertise to develop and operate these solutions for credit unions. Of particular interest is the Loan Navigator solution that provides instant decisioning for all types of Internet loan applications in under a minute. CyberBranch Corporation has been acquired for a cash consideration of approximately US$ 1 million (CDN$1.5 million) plus future royalty considerations.
Through this acquisition, CGI will expand its Web-enabled solutions and build upon its Web-enabled delivery channel capabilities. The CyberBranch expertise and solution set, including a Web-enabled core banking front end, various Web-enabled credit union member access components, and its expertise at delivering Web solutions in an ASP mode, accelerates CGI's implementation of this strategy.
Warren Marshall, CyberBranch's president and CEO, added: "We are extremely pleased about joining CGI. Our current clients and technology partners investment in CyberBranch e-commerce solutions is preserved now and for the future. CGI's established distribution network, combined with our leading edge technologies and expertise, will allow us to significantly increase our critical mass in a rapidly consolidating North American market place. Leveraging both companies' solutions and skill sets will allow us to present a compelling offering to our credit union clients all across Canada and the U.S."
John R. Davis, president and CEO of Stanford Federal Credit Union said: "The acquisition by CGI offers the Credit Union an ability to continue to work as a technology partner with CyberBranch, while participating in the future success of the company as it sells into an expanded, international market place."
"We are delighted to welcome the 21 professionals of CyberBranch to CGI," said Gilles Godbout, senior vice-president of Credit Union Solutions and Services, CGI. "With operations in the Silicon Valley and some 170 clients in the credit union sector, CyberBranch enhances our already established presence in the US credit union market. It also brings highly valuable IT solutions, and its skilled staff will contribute to our leading edge expertise in meeting the needs of financial services clients."
CGI provides core banking solutions to more than 350 North American credit unions and supports approximately 2,500 ATMs, and processes more than 300 million payment transactions annually.
CyberBranch was incorporated on April 1, 1997 as a subsidiary of the Stanford Federal Credit Union of Palo Alto California. Cyberbranch, through its affiliation with, and the research efforts of the Credit Union, have been leaders in the development of Internet delivery technologies for the Credit Union Marketplace.
Founded in 1976, CGI is the fifth largest independent information technology services firm in North America, based on its headcount of more than 10,000 professionals. CGI's order backlog totals approximately US$5.3 billion (CDN$8.2 billion) and its revenue run-rate is close to US$1 billion (CDN$1.5 billion). CGI provides end-to-end IT services and business solutions to 2,500 clients in the United States, Canada and more than 20 countries around the world. CGI's shares are listed on the NYSE (GIB), as well as on the TSE (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 index as well as the S&P/TSE Canadian Information Technology index. Web site: 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; and other risks identified in Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s annual report or Form 40F filed with the U.S. Securities & Exchange Commission and the Company's Annual Information Form filed with Canadian securities commissions. 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.
- 30 -
For more information:
Director, investor relations
Director, media relations