CGI Signs Letter Of Intent To Acquire C. U. Processing Inc., a U.S.
based Information Management Systems Provider
Montreal, Quebec --Aug. 29,2000
* CGI, currently serving 2.5 million Canadian credit union
members with its proprietary banking services, will now serve
an additional client base of 2.5 million U.S.-based members
CGI announced today that it has signed a letter of intent for the
acquisition of Detroit-based C.U. Processing, a provider of
information management systems primarily to U.S. credit unions.
C.U. Processing will be acquired for a cash consideration of
approximately CDN$ 37 million. The transaction is expected to
close on August 31, 2000.
"We are delighted to welcome C.U Processing's 160 professionals
within CGI," said Serge Godin, CGI's chairman and CEO. "With
operations in 14 U.S. locations and some 300 clients in the
financial services sector, C.U. Processing establishes CGI as a
strategic IT partner to the U.S. credit union community. They
also bring highly valuable IT solutions and their skilled staff
will contribute to our leading expertise in meeting the needs of
financial services clients." With this transaction, CGI now
serves a total of five million credit union members, equally
distributed across Canada and the U.S.
David Palmer, C.U. Processing's chairman and CEO, who will join
CGI as senior vice-president and general manager, Credit Union
Processing Services in the United States, added: "We are
extremely pleased about joining CGI. We feel that combining our
strengths will allow us to significantly increase our critical
mass in a rapidly consolidating North American market place.
Leveraging both companies' solutions and skill sets will allow us
to present a compelling offering to our credit union clients all
across Canada and the U.S."
C.U. Processing is a privately held company founded in 1984. It
provides credit union clients with a range of financial systems
and services and operates eight regional data centres. Its
operations are located in 14 U.S. cities, mostly in the U.S.
Midwest and West, including the states of Illinois, Michigan,
Ohio, Tennessee, and Washington. The Company also has a presence
in Toronto, Canada.
For its latest fiscal year, C.U. Processing recorded revenues of
more than CDN$35 million, 95% of which was generated in the U.S.,
with the remaining 5% in Canada. With this acquisition, CGI now
generates approximately CDN$100 million in annual revenues
serving over 2,000 credit union clients across Canada and the
U.S.
CGI is the largest Canadian information technology consulting
firm and the fifth largest independent in North America, based on
its revenue run rate of CDN$1.4 billion. CGI's order backlog
totals CDN$7.0 billion. CGI has close to 10,000 professionals and
provides end-to-end IT services and business solutions to 2,500
clients in Canada, the United States and more than 20 countries
around the world. CGI's shares are listed on the New York Stock
Exchange (GIB), as well as on the Toronto exchange (GIB.A). They
are included in the Toronto Stock Exchange's TSE 300 Composite
and TSE 100 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
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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 or Form 40F filed with the SEC and its
Annual Information Form filed with Canadian securities
commissions, which important factors are included here by
reference. |
