Possible contract for another $20-25M per year for 10 years
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: WESTBURNE INC. TSE;ME SYMBOL: WBI
AND CGI GROUP INC. ME, TSE SYMBOL: GIB.A
MAY 1, 1997
MONTREAL, QUEBEC--Westburne Inc. and the CGI Group Inc. today
announced a strategic partnership proposal under which CGI would
take charge of the delivery of all information technology services
- currently handled internally by Westburne - for a ten year
period. CGI would manage Westburne's applications development and
maintenance as well as its information technology facilities.
Westburne's IT related personnel would be integrated within 's
CGI's own work force.
Westburne's IT facilities provide on-line services to its 22
divisions across North-America. Westburne's partnership with CGI
is subject to the execution of a formal contract and exact
financial figures will only be known after a joint detailed
evaluation of the facilities and services required, likely to be
completed in July 1997. This partnership allows for estimated
revenue of $20 to $25 million per year for CGI.
"This partnership will create a synergy that will allow us to
provide improved and cost-effective solutions to our customers
that confirms Westburne's innovative leadership in the
distribution industry" noted Robert Chevrier, Chairman, President
and Chief Executive Officer of Westburne. "CGI's involvement will
accelerate the development of key projects, such as EDI and
integrated supply and their people will give us access to a
renewed wealth of competencies and breadth of experience."
"We are very proud to develop this partnership with a firm that
has the reputation, presence and quality of Westburne" said Serge
Godin, Chairman of the Board and Chief Executive Officer of CGI.
"Westburne is highly regarded in the distribution sector and we
welcome this opportunity to leverage our expertise in this field,
which represents one of our main target markets. We also believe
that Westburne therefore acquires an important strategic advantage
since it will now be in a position to offer its clients integrated
supply services that are supported by ISO 9001-certified IT
practices."
CGI is the largest Canadian-owned independent information
technology consulting firm with 2,600 specialists and a revenue of
$260 million (run rate) for the current year - approximately 50
percent of which is from technology management. It provides end-
to-end services and business solutions to more than 1,800 clients
throughout Canada, United States and elsewhere in the world.
Westburne Inc. is one of North America's largest integrated
distributors of electrical, plumbing, heating, refrigeration,
ventilation and waterworks supplies. Westburne Inc. also
distributes oil and gas field supplies, industrial material, fire
protection equipment and industrial automation products.
The Head Office of Westburne Inc. is in Montreal and its shares
are traded on the Montreal Exchange and the Toronto Stock Exchange
(WBI).
FOR FURTHER INFORMATION PLEASE CONTACT:
Westburne Inc.
John A. Hanna
(514) 342-5181
or
CGI Group Inc.
Paul Dore
(514) 841-3212 |
