CGI Group Inc. (CGI) (TSX: GIB.A; NYSE: GIB), a leading provider of end-to-end information technology (IT) and business process services, announced today the acquisition of certain assets of GDS & Associates Systems Ltd. (GDS) representing CDN$6 million in annual revenue. Through this acquisition, CGI obtains a presence in Victoria and an opportunity to extend relationships into government and other accounts. Also, CGI expands in Regina and Edmonton. Presently CGI's Western Canada operations employ over 1,000 professionals.
As part of this acquisition, 61 senior-level professionals located in Victoria, Regina and Edmonton will join CGI. Founded in 1984, privately-held GDS has delivered systems integration and consulting services to clients primarily within the government sector. For CGI, government accounts currently represent over 13% of its revenue.
"We were at a stage in our development where we needed to grow to evolve and add more value. For over 20 years of building our business we have earned a solid reputation with our clients. In joining CGI we are now able to take our offering to the next level by providing more services and solutions," said Willis Groshong, president and CEO of GDS.
Michael Roach, president and COO of CGI added: "We strongly believe that this is an opportune time for us to enter the BC market and this acquisition gives us a strong entry point. It also demonstrates our continuing commitment to expanding and growing our operations in Saskatchewan and Alberta. Through this acquisition we are building upon our ability to serve our government clients and expand into other verticals."
Founded in 1976, CGI is the fifth largest independent information technology services firm in North America, based on its headcount. CGI and its affiliated companies employ 20,000 professionals. CGI's annualised revenue run-rate is currently CDN$2.8 billion (US$1.9 billion) and at September 30, 2003, CGI's order backlog was CDN$12.3 billion (US$9.1 billion). CGI provides end-to-end IT and business process services clients worldwide from offices in Canada, United States and Europe. CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the TSX 100 Composite Index as well as the S&P/TSX Canadian Information Technology and Canadian 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:
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