Claude Béland, President of the Mouvement Desjardins, and Serge Godin, Chairman of the Board and CEO of CGI, today announced that the Confédération des caisses populaires et d'économie Desjardins and CGI have signed an important agreement based on which CGI is acquiring the assets and all contracts of Technologie Desjardins Laurentienne (TDL). TDL's current annual revenue totals $45 million. The assets are valued at $27.6 million and the contracts are initially worth $130 million over five years. In addition, both parties agreed to preserve the jobs involved as CGI is hiring TDL's 130 employees while also taking responsibility for the company's other commitments.
TDL provides Desjardins Laurentian Financial Corporation (DLFC) and other clients such as Laurentian Bank with information technology, telecommunications, document printing and insertion services. DLFC's user group is comprised of Desjardins Laurentian Life Group, Société de portefeuille du Groupe Desjardins assurances générales, Desjardins Trust and Desjardins Securities. Information services which belong to the cooperative sector and to TDL's internal clients from the Confédération will not be impacted by this transaction. It should be noted that when Desjardins acquired the Laurentian Group, it also acquired Technologie Laurentienne Inc. (TLI). In 1995, the Confédération des caisses populaires et d'économie Desjardins became TLI's sole owner and changed its name to Technologie Desjardins Laurentienne.
"We are pleased with this agreement since it provides CGI, an information technology leader in Quebec, with stimulating growth potential. We are also pleased that we have maintained jobs. Meanwhile, we are reducing our operating costs, which will benefit members of caisses populaires," said Claude Béland.
Serge Godin added that CGI is pleased to have completed this transaction. "This allows us to increase our critical mass as a supplier of information technology to the financial services industry. CGI already ranks among the leaders in this sector in Canada and this transaction further enhances our position."
CGI is the largest independent information technology consulting firm in Canada and the sixth largest in North America. It provides end-to-end IT services and business solutions to some 2,000 clients in Canada, the United States and in 20 countries around the world. CGI has more than 7,500 professionals, an annualized revenue-run rate of $1.2 billion and an order backlog totalling approximately $6 billion. CGI's shares (GIB.A) are included in The Toronto Stock Exchange's TSE 300 Composite and TSE 200 indexes.
The agreement, approved by both companies, is effective immediately and remains subject to the signing of a definitive contract, which is expected in November 1998.
For more information:
Pierre Brossard
Secrétaire général
Confédération des caisses
populaires et d'économie Desjardins
(514) 281-7228
Ronald White
Public Affairs
CGI
(514) 841-3200
