According to the terms of the due diligence process announced in October 2000, Mouvement Desjardins and CGI have signed the agreement confirming a strategic alliance for the management of data processing and micro-computing. Under the terms of this ten-year agreement, worth CDN$1.2 billion, Desjardins delegates the management of its data processing operations to CGI, while maintaining control of its technological orientations. Furthermore, Desjardins will team up with CGI to develop the marketing of its data processing applications in the financial institutions market.
Under the terms of this agreement, almost 450 Desjardins employees already working in this sector have been transferred to CGI as of today. CGI has agreed to protect these jobs for at least twelve months and to provide the transferred employees with comparable working conditions.
"Desjardins is proud to announce the conclusion of this agreement, which will allow us to maintain our position at the leading edge of technology and to take advantage of profitable new business opportunities for the benefit of our more than 5 million individual and corporate members," declared Alban d'Amours, president of the Mouvement des caisses Desjardins.
"We are very pleased to have concluded this strategic partnership with Mouvement Desjardins," added Serge Godin, CGI's chairman, president, and CEO. "We are confident that this alliance will generate major benefits for both Mouvement Desjardins and CGI, as well as our respective clienteles. We would also like to extend a warm welcome to the Desjardins employees who are joining us. They are a strong, multidisciplinary team that will help CGI consolidate its position as a North American leader in information technology."
In the context of this Agreement, a warrant was issued by CGI to Desjardins which is entitled to subscribe, until April 30, 2006, up to 4,000,000 Class A Subordinate Shares of CGI at a price of CDN$6.55 per share.
CGI's majority individual shareholders (Serge Godin, André Imbeau and Jean Brassard) have decided to exercise their preemptive rights pursuant to the articles of incorporation of CGI in respect of the issue of the warrant in order to maintain their Class B voting interests at current levels. BCE Inc. has decided to exercise its preemptive right in order to maintain its voting and equity interests at current levels. Pursuant to such exercise of preemptive rights, CGI will issue warrants with substantially the same terms and conditions, subject to the approval of the regulatory authorities. Such warrants may only be exercised only and to the extent that Desjardins exercises its warrant.
About Desjardins
With total assets of some $80 billion and more than 36,000 employees, the Mouvement des caisses Desjardins is Quebec's largest financial institution and private employer. It is the only institution to offer, through caisses across Quebec, a complete range of financial products and services. The mission of the Mouvement Desjardins is to contribute to the economic and social well-being of people and communities. Web site: www.desjardins.com.
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:
André Chapleau
Director, media relations
Mouvement Desjardins
(514) 281-7229
1 800 363- 6744, number 7229
Ronald White
Director, Investor relations
CGI
(514) 841-3230
Eileen Murphy
Director, Media relations
(514) 841-3430
