CGI Group Inc. (TSE: GIB.A; NYSE: GIB) and AGTI Consulting Services Inc. today announced they have concluded an agreement in principle whereby CGI will invest approximately CDN$23 million to acquire a 49% interest in AGTI, a Montreal-based information technology consulting firm with more than 225 senior consultants.
"We are pleased to have concluded this alliance with such a high-calibre company as AGTI," stated Serge Godin, CGI's chairman and CEO. "Both our firms share a focus on quality and their operations are complementary in terms of IT expertise. Also, both companies focus on industry sectors such as telecommunications and financial services."
Jacques Martineau, president of AGTI, added, "We are proud to be associated with a highly reputable company like CGI, which has a client base comprised of some of the largest North American and international companies. We believe that our partnership will allow us to accelerate and further strengthen our market positioning based on our approach which emphasizes close client support throughout the project. This approach has represented the cornerstone of our success to date. This association will allow us to provide our professionals with an opportunity to work on even more stimulating projects."
Under the terms of the alliance, AGTI and CGI will cooperate in offering information technology consulting services to both existing and new clients. Founded in 1996, AGTI is a privately-held company owned by some 30 partners actively involved in the firm. Its annual revenues total approximately CDN$27 million. It generates 40% of its revenues in the telecommunications sector; 25% in the financial services industry; 20% in governmental organizations; and 15% in manufacturing, transport, distribution, and energy.
About CGI
Founded in 1976, CGI is the largest independent Canadian information technology consulting firm and the fifth largest in North America, based on its revenue run rate of CDN$1.4 billion. CGI's order backlog totals approximately CDN$7.0 billion. CGI has close to 10,000 professionals and provides end-to-end IT services and business solutions to 2,500 clients in Canada, the United States and more than 20 countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto exchange (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 100 indexes. Web site: www.cgi.ca
All statements contained in this or any other press release of CGI Group Inc., or in any document filed by the Company with the U.S. Securities and Exchange Commission, or in any other written or oral communication by or on behalf of the Company, 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 Company's 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 company's 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 Company's annual report or Form 40F filed with the SEC and its Annual Information Form filed with Canadian securities commissions, which important factors are included here by reference.
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For more information:
CGI
Ronald White
Director, Investor Relations
Tel.: (514) 841-3230
ronald.white@cgi.ca
AGTI
Jacques Martineau
President
Tel: (514) 843-2484, extension 227
jacques.martineau@agti.ca
