The Mouvement Desjardins and CGI today announced the closing of the transaction based on which CGI has acquired the assets and all contracts of Technologie Desjardins Laurentienne (TDL). In August 1998, both companies had announced the signing of an agreement in principle to that effect. All amounts are in Canadian dollars.
At the time of the transaction, TDL's annual revenue totalled $40 million. The contracts are initially worth $155 million over five years. Approximately 100 of TDL's employees have joined CGI as part of the agreement, which became effective January 1, 1999.
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 Mouvement Desjardins will not be impacted by this transaction.
With total assets of some $72 billion and more than 42,000 employees, the Mouvement des caisses Desjardins is Quebec's largest financial institution and private employer. It is the only institution to offer, through its 1,240 caisses across Quebec, a complete range of financial products and services. The Mouvement Desjardins' mission is to contribute to the economic and social well-being of people and communities.
CGI is the largest independent information technology consulting firm in Canada and the sixth largest in North America, based on its revenue run rate of $1.3 billion. The company's order backlog totals approximately $6.5 billion. CGI has 8,000 professionals and provides end-to-end IT services and business solutions to some 2,000 clients in Canada, the United States and 20 countries around the world. CGI's shares are listed on the New York Stock Exchange (GIB), as well as on the Toronto and Montreal exchanges (GIB.A). They are included in the Toronto Stock Exchange's TSE 300 Composite and TSE 200 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.
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La Confédération des caisses populaires et d'économie Desjardins du Québec
André Chapleau
Director, Communications
(514) 281-7229
CGI
Ronald White
Investor and Media Relations
(514) 841-3200
