Yellow Pages (TSX: Y) and CGI (TSX: GIB.A) (NYSE: GIB) are pleased to announce a new 10-year IT outsourcing agreement valued at $160 million. Under the agreement, Yellow Pages will outsource some of its IT operating infrastructure and platform management to CGI. As a result, 119 IT positions from Yellow Pages will be transferred to CGI, the majority of which are located in Montreal.
Yellow Pages will retain responsibility for its strategic IT development as well as management and development of all digital applications and services related to the company's core business of providing digital media and marketing solutions for businesses.
“This agreement will further contribute to finding the operational and business efficiencies that make up part of our Return to Growth plan,” said Julien Billot, President and Chief Executive Officer for Yellow Pages. “In this manner, we’ll be able to focus our IT investments and resources on activities and technologies that afford us distinctive and competitive market advantages. We’re pleased to be able to partner with a global technology leader, headquartered in Montréal, and keep these quality digital positions and opportunities within the province.”
“Since 2004, Yellow Pages has had a strong history of working with CGI and we look forward to continuing our partnership,” said Mark Boyajian, President, Canada operations of CGI. “Our focus will be on driving significant improvements and cost savings across its IT operations, in order to invest more resources into the continued growth of their digital business.”
Yellow Pages currently provides media and marketing solutions to over 240,000 small business customers across Canada. Over 68% of its total revenues come from digital products and services or roughly $550 million in digital-only revenues on an annualized basis.
About Yellow Pages Limited
Yellow Pages Limited (TSX: Y) is a Canadian digital media and marketing solutions company that supports local economies by helping neighbourhood businesses reach new customers and foster stronger relationships with existing clients through its various media and products. Yellow Pages holds some of Canada’s leading local online search properties including YP.ca™, the ComFree/DuProprio network, RedFlagDeals.com™, Canada411.ca, 411.ca, Bookenda.com, dine.TO and YP NextHome. The Company also holds the YP, YP Shopwise, YP Dine, RedFlagDeals, Canada411, 411, Bookenda and YP NextHome mobile applications and Yellow Pages™ print directories. Through Mediative, Yellow Pages is a leader in national advertising through its various channels and services devoted to North American businesses. The Company also owns JUICE Mobile, a mobile advertising technology company whose proprietary programmatic platforms facilitate the automatic buying and selling of mobile advertising between brands and publishers. For more information visit www.corporate.yp.ca.
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. Approximately 68,000 professionals serve thousands of global clients from offices and delivery centers across the Americas, Europe and Asia Pacific, leveraging a comprehensive portfolio of services, including high-end business and IT consulting, systems integration, application development and maintenance and infrastructure management, as well as 150 IP-based services and solutions. With annual revenue in excess of C$10 billion and an order backlog exceeding C$20 billion, CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Website: www.cgi.com.
Forward-Looking Statements - CGI
All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are “forward-looking information” within the meaning of Canadian securities laws. These statements and this information represent CGI’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 or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI’s annual and quarterly Management’s Discussion and Analysis (“MD&A”) and in other public disclosure documents filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), as well as assumptions regarding the foregoing. The words “believe”, “estimate”, “expect”, “intend”, “anticipate”, “foresee”, “plan”, and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.
Forward-Looking Statements –Yellow Pages
This press release contains forward-looking statements about the objectives, strategies, financial conditions, results of operations and businesses of the Company including the anticipated future annual cost savings in respect of IT operating costs. These statements are forward-looking as they are based on our current expectations, as at November 17, 2016, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in section 6 of our November 10, 2016 Management’s Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.
For more information
Vice-President, Communications and Public Affairs, CGI
Director, Public Relations and Corporate Communications, Yellow Pages
Lorne S. Gorber
Executive Vice-President, Global Communications and Investor Relations, CGI
Senior Analyst, Corporate Planning & Investor Relations, Yellow Pages