CGI today announced that it has entered into an agreement to acquire RSI Realtime Consulting Inc., an SAP implementation specialist. RSI is a Toronto-based consulting and software development firm focused on SAP implementations, employing 45 full-time staff with annual revenues of CDN $6 million. The acquisition will be paid for with a mix of cash and CGI shares and all parties expect the transaction to be completed in November.
RSI is a privately held company that specializes in the high technology sector as well as manufacturing and consumer products. Clients include ATI Technologies, Clearnet, Ericsson, Formet Industries (Cosma Division of Magna) and University of Toronto. The company was founded five years ago and the founders, Helmut Mayer and Rick Russo, previously with SAP Canada, will be joining CGI in senior leadership roles.
"By joining forces with CGI, we will not only broaden our scope and potential for growth within a leading IT services firm, but also be CGI's sales and delivery arm in the key Canadian market," said Helmut Mayer of RSI. "RSI's non-hierarchical approach, which fosters entrepreneurial creativity, blends well with CGI's values of intrapreneurship and constant focus on quality."
Mike Roach, CGI executive vice president and general manager, Canada added: "Acquiring RSI is in keeping with our strategy of strengthening our position in the SAP market. This acquisition will build on our current capability in this market and accelerate our previously announced move into the ASP market. With our certification to provide SAP applications in an ASP mode, we look forward to continued growth in this fast evolving market."
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 100 index as well as the S&P/TSE Canadian Information Technology index. Web site: www.cgi.ca
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 US 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:
Ronald White
Director, investor relations
(514) 841-3230
Eileen Murphy
Director, media relations
(514) 841-3430
