BCE Mobile Communications Inc. (Bell Mobility) and CGI Group Inc. today announced an agreement under which CGI will provide Bell Mobility with the wireless carrier's information technology services.
Under the memorandum of understanding, most of Bell Mobility's IS/IT staff will transfer to CGI. The balance will remain with Bell Mobility to provide the business direction and management of the function. Job losses are not anticipated as a result of the transfer.
The ten-year agreement is expected to generate revenue in the order of CDN$100 million for CGI in the first 12 months, as Bell Mobility initiates the development of a new billing and customer care system and completes its Year 2000 readiness work. Annual revenue in subsequent years will be dependent on Bell Mobility's growth and specific future requirements. Bell Mobility expects to realize significant cost savings over the life of the partnership.
"We wanted an IT partner with a solid track record and wide-ranging expertise in providing services to telecommunications companies around the world," said Randall Reynolds, President and CEO of Bell Mobility. "The CGI team not only fits that description, but it is also a strategic partner of the BCE family which opens up the possibility of more synergies across the BCE group. Together, we will enhance the efficiency of our IT operations and that, in turn, will enable us to serve our customers better."
Serge Godin, Chairman of the Board and CEO of CGI, said: "CGI is pleased to have the opportunity to be Bell Mobility's long-term IT partner. Over time, we will leverage the IT expertise gained by serving other telcos around the world and put it to work for Bell Mobility. We look forward to serving the mission-critical IT needs of a client with a leading position in a dynamic industry that we know well."
Mr. Godin said the partnership combines the strengths of two companies that lead their industries. "Bell Mobility is the leading wireless communications company in Canada and CGI is second to none in delivering IT solutions. We believe that by working closely together, our teams will create significant new value for our respective customers."
Mr. Reynolds said the agreement holds great potential for Bell Mobility's IS/IT staff. "The people who are transferring to CGI will benefit by joining the leading IT company in Canada where they will be exposed to a broader range of professional challenges and rewarding career opportunities." The partners have entered into due diligence and expect to finalize the formal agreement by the end of the second quarter.
The Bell Mobility family of companies provides a complete range of wireless communications solutions - cellular, 1- and 2-way paging, data, satellite, PCS and airline passenger communications services -to over 2 million Canadian customers. Bell Mobility companies are subsidiaries of BCE Mobile Communications Inc., a publicly-traded company (TSE, ME, NYSE; stock symbol BCX) which is 65% owned by BCE Inc.
CGI is the largest independent information technology consulting firm in Canada and the sixth largest in North America, based on its revenue run rate of CDN$1.3 billion. CGI's order backlog totals CDN$6.7 billion and the company currently has proposals outstanding for an additional CDN$4 billion in potential large contracts. CGI has 8,000 professionals and provides end-to-end IT services and business solutions to some 2,000 clients in Canada, the United States and 20 countries around the world. Its shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 200 indexes.
All statements contained in this or any other press release of CGI Group Inc., and BCE Mobile Inc. or in any document filed by the Companies with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the companies, 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 Companies' 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 companies' 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 Companies' Annual Report.
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For information:
BCE Mobile
Leanne Bucaro (905) 282-4054
Media Relations Officer
CGI
Ronald White
Investor and Media Relations
(514) 841-3230
