CGI Group Inc. (TSX: GIB.A; NYSE: GIB) (CGI) today announced the signing of a binding memorandum of understanding (MOU) for the complete acquisition of AGTI. Since December 6, 2000 CGI has held a 49% equity position in AGTI. Founded in 1996, AGTI is a privately-held, Montreal-based information technology (IT) consulting company with revenues of CDN$50 million. The transaction is expected to be finalized in December 2004.
AGTI is a leader in business and IT consulting, project and change management, and productivity improvement. As part of the transaction, 350 senior-level professionals located in Montreal, Quebec City, Victoria, Vancouver, Calgary and Edmonton will join CGI. AGTI brings CGI high-caliber professionals with vast expertise and knowledge in several vertical sectors including government, distribution and energy.
Jacques Martineau, president of AGTI said: "We are all very excited about joining CGI, clearly a world-class leader in IT. We were at a point in our evolution that we needed to join forces with a market leader. With CGI, our professionals will have more opportunities for career growth and our clients will have a global, end-to-end IT partner at their service."
"Over the last four years we have had the opportunity to work with AGTI's quality driven team and would like to warmly welcome them to CGI. We look forward to offering our clients more consulting services that pertain to increasing their IT productivity and performance. AGTI will strengthen our scale and scope of services in both Quebec and Western Canada," said Michael Roach, CGI's president and chief operating officer.
Founded in 1976, CGI is among the largest independent information technology and business process services firms in North America. CGI and its affiliated companies employ approximately 25,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States, Europe, Asia Pacific as well as from centers of excellence in India and Canada. CGI's annualized revenue run rate is currently CDN$3.8 billion (US$2.8 billion) and at September 30, 2004, CGI's order backlog was CDN$13 billion (US$9.4 billion). CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. 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. 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 authorities, 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, which speak only as of the date on which they are made. In particular, statements relating to future revenue from outsourcing contracts are forward-looking statements. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on these forward-looking statements.
For more information:
Jane Watson, Vice-President, Investor Relations
(514) 841-3200 or (416) 945-3616
Ronald White, Director, Investor Relations
Eileen Murphy, Director, Media Relations