CGI Group Inc. (NYSE: GIB, TSE:GIB.A) announced today it has signed a letter of intent to acquire Larochelle Gratton, a Quebec-based IT consulting firm with operations in Montreal and Quebec City. Larochelle Gratton has approximately 200 employees and provides a range of systems integration services to leading client organizations, including in areas such as e-commerce and the Internet.
Larochelle Gratton, which has annual revenue of approximately CDN$18 million, will be acquired for a consideration of CDN$9.2 million in cash and shares (approximately 517,000 Class A subordinate shares of CGI will be issued at closing). The transaction is expected to be effective July 1, 2001.
"We are really pleased to welcome Larochelle Gratton's team of highly specialized professionals into CGI," said Serge Godin, CGI's chairman, president and CEO. "Larochelle Gratton and CGI both share a similar vision of providing top quality services, and both organizations have ISO 9001 certification."
Éric Larochelle, president of Larochelle Gratton, added: "Our firm welcomes the possibility of teaming up with such a world-class organization as CGI. We believe that together, we will be in a position to bid on a larger number of business projects, which will translate into even more stimulating career opportunities for our people. We believe that we can make a significant contribution to CGI, especially considering our business relationships with leading clients in the financial services industry."
Larochelle Gratton was founded in Montreal in 1988. Its clients include Standard Life, the Laurentian Bank of Canada and Mouvement Desjardins, among others. Its team of managers and consultants will join CGI offices following completion of the transaction.
About CGI
Founded in 1976, CGI is the fifth largest independent information technology services firm in North America, based on its headcount of more than 10,000 professionals. CGI's order backlog totals approximately US$5.3 billion (CDN$8.2 billion) and its revenue run-rate is close to US$1 billion (CDN$1.5 billion). CGI provides end-to-end IT services and business solutions to 2,500 clients in the United States, Canada and more than 20 countries around the world. CGI's shares are listed on the NYSE (GIB), as well as on the TSE (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 index as well as the S&P/TSE Canadian Information Technology index. Web site: www.cgi.ca.
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 the Private Securities Litigation Reform Act of 1995. 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; and other risks identified in Management's Discussion and Analysis (MD&A) in CGI Group Inc.'s annual report or Form 40F filed with the U.S. Securities & Exchange Commission and the Company's Annual Information Form filed with Canadian securities commissions. All of the risk factors included in these filed documents are included here by reference. CGI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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For more information:
CGI
Ronald White
Director, investor relations
(514) 841-3230
Larochelle Gratton
Éric Larochelle
President
(514) 393-8558
