Nexxlink Technologies Inc. (TSX: NTI), a leading Canadian provider of integrated information technology solutions, and CGI Group Inc. (TSX: GIB.A; NYSE: GIB) announce the conclusion of the acquisition by Nexxlink Technical Services Inc., a wholly-owned subsidiary of Nexxlink, of CGI assets related to the technical support company Meta-4 Technical Support Services ("Meta-4"). This transaction follows the irrevocable memorandum of understanding signed between both parties on March 22, 2004.
Founded in 1981, Meta-4 offers Canada-wide installation, maintenance and technical services for a broad range of electronic equipment such as computer systems, automated teller machines (ATMs) and video lottery terminals. It employs almost 170 people and generates revenues of over $15 million annually. From its offices in Montreal, Quebec City, Toronto, Calgary and Vancouver, Meta-4 serves hundreds of organizations of all sizes, including Mouvement Desjardins, Jean Coutu Group, National Bank of Canada and Loto-Québec. Meta-4 maintains 4,200 ATMs and 4,300 video lottery terminals.
As part of this transaction, Nexxlink has paid $8.75 million to CGI as follows: $1.5 million cash; $1.5 million as a balance of sale; $2.75 million through the issue of an interest-bearing note maturing in 24 months; and $3.0 million through the issue of 441,000 shares of Nexxlink at a price of $6.80 per share, raising CGI's interest in the Company's capital stock from 32% to 35%.
Involved in the information technology (IT) industry since 1977, Nexxlink Technologies Inc. is a leading Canadian provider of integrated IT solutions. The simple and efficient solutions provided by the Company allow businesses to focus on their core competencies. Nexxlink truly offers hassle-free computing services. Following this transaction, Nexxlink will have annual sales of approximately $125 million and employ some 900 people across the country. The Company's shares are listed on the TSX under the ticker symbol NTI.
Founded in 1976, CGI is among the largest independent information technology and business process services firms in North America. CGI and its affiliated companies employ approximately 20,000 professionals. CGI's annualized revenue run rate is currently CDN$2.8 billion (US$2.1 billion) and at December 31, 2003, CGI's order backlog was CDN$12.2 billion (US$9.3 billion). CGI provides end-to-end IT and business process services to clients worldwide from offices in Canada, the United States and Europe, as well as from centers of excellence in India and Canada. CGI's shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite Index as well as the S&P/TSX Capped Information Technology and MidCap Indices. Website: www.cgi.com.
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For more information:
Source : Nexxlink Technologies inc. (TSX : NTI)
Contacts: Karol Brassard, Executive Chairman of the Board
Telephone: 1 877 Nexxlink; (514) 828-4428
Source: Groupe CGI inc. (TSX : GIB.A, NYSE : GIB)
Contact: Julie Creed, Vice-president, Investor Relations
Telephone: 1 (312) 201-4803
Contact: Ronald White, Director, Investor Relations
Telephone: 1 (514) 841-3230
Contact: Eileen Murphy, Director, Media Relations
Téléphone: 1 (514) 841-3430
Source: Renmark Financial Communications Inc.
Sylvain Laberge
Michael Small
Media relations: Colette Saulnier
Telephone: (514) 939-3989
