CGI Group Inc, (TSX: GIB.A; NYSE: GIB), today announced the sale of a Canadian business processing unit providing claims adjusting and risk management services to the Canadian property and casualty (P&C) insurance industry. With approximately $70 million in revenue, the business is being sold to privately-held The Shumka Group. The transaction is expected to close in early August 2008.
“It is important to specify that CGI remains fully committed to the P&C insurance industry through its end-to-end IT services offering,” said Michael E. Roach, President and CEO of CGI. “As such, we will continue to serve our clients by focusing on information technology and by making significant investments in our intellectual property and in our solutions such as CGI EdgeTM, GIOS and Ratabase®.”
About The Shumka Group
The Shumka Group is Canada’s largest independent, privately-owned supplier of claims management services. Established in 1986 with a single branch in Edmonton, Alberta, The Shumka Group today has grown to become a national company with 86 offices and more than 600 employees from coast-to-coast. The Group is currently comprised of three operating entities: SCM Adjusters Canada Ltd., an integrated insurance services company; Integra Claims & Systems Management Inc., a claims adjustment and management software company; and Forensic Investigations Canada, an insurance-related investigation company. Together, The Shumka Group of companies deliver world-class service through an uncompromising commitment to innovative technology, expert staff and solid customer service. Website: www.scm.ca .
About CGI
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 27,000 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 North America, Europe and India. CGI's annual revenue run rate stands at $3.8 billion and at March 31st, 2008, CGI's order backlog was $12.04 billion. CGI 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.
CGI Forward- Looking Statements
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 sections 138.3 and following of the Ontario Securities Act. 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 and 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 MD&A, 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 significantly differ from our current expectations in the Risks and Uncertainties section.
-30-
For more information:
CGI
Investor relations and media
Lorne Gorber
Vice-President, Global Communications and Investor Relations
lorne.gorber@cgi.com
514-841-3355
Trade media
Stephen Bosic
Director of US Communications
stephen.bosic@cgi.com
978-946-3249
The Shumka Group
Larry Shumka
President and CEO
lshumka@scm.ca
800-565-3128
