CGI (NYSE: GIB) (TSX: GIB.A) has signed a 10-year managed IT services contract with FashionCube, which unites six leading fashion brands in the European market. Under this contract, CGI will manage all of FashionCube's IT activities with the aim of maximizing synergies and accelerating the transformation of member brands. This contract has a potential value of 96 million euros.
FashionCube is an economic entity that brings together six fashion brands: Pimkie, Jules, Bizzbee, Orsay, Grain de Malice and Rouge Gorge. Created in 2017, FashionCube is an ecosystem in which each brand shares resources, know-how and innovations to maximize value creation. In a very competitive and constantly evolving environment, FashionCube aims to drive the in-depth transformation of its brands to achieve "Positive Impact Fashion."
"The clothing sector faces tremendous turbulence," said Jean-Christophe Garbino, CEO, FashionCube. "To face it, FashionCube brands have embarked on a transformation initiative with the common ambition of creating a new business model that has a positive impact on fashion. To be effective, this transformation requires know-how and cutting-edge technological innovations, which is what we have found at CGI, as well as operational excellence achieved through managed services. We know that we can count on CGI's competent and committed teams."
FashionCube has entrusted CGI with the operational management of all its IT activities, including user services, application maintenance and upgrades, and operations and infrastructure upgrades. In this context, 61 employees of the six brands will join CGI in four countries (France, Germany, Spain and Poland). The partnership also covers the construction of a FashionCube information systems organization in the next three years.
With its proven track record in managed services, CGI will pursue the following objectives throughout the contract:
- Improve service quality
- Maximize IT synergies
- Accelerate key transformation projects
- Increase the value creation of services
"I am proud of the trust FashionCube has placed in us through this major contract," adds Daniel Lecerf, Senior Vice-President of CGI's Hauts-de-France region and Global Center of Excellence for Commerce and Consumer Services. "Our reputation for operational excellence, expertise within the trade and consumer services industry, and full range of services enables us to support FashionCube across its entire value chain. Beyond that, it is a pleasure to welcome 61 new colleagues, including approximately 40 to our teams in Lille. These new CGI professionals will have the opportunity to develop their careers within our company, which is culturally close to FashionCube."
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 76,000 consultants and other professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2020 reported revenue is C$12.16 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.
Forward-looking information and statements
This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, external risks (such as pandemics) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to attract and retain qualified employees, to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws, our ability to negotiate favourable contractual terms, to deliver our services and to collect receivables, and the reputational and financial risks attendant to cybersecurity breaches and other incidents; as well as other risks identified or incorporated by reference in this press release, in CGI's annual and quarterly MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR at www.sedar.com) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). For a discussion of risks in response to the coronavirus (COVID-19) pandemic, see Pandemic Risks in section 10.1.1. of our annual and quarterly MD&A. Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled "Risk Environment" of CGI's annual and quarterly MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual and quarterly MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.
SOURCE CGI Inc.
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