COGNICASE acquisition, long-term contract
APRIL 9, 1998
COGNICASE Acquires Information Technology Outsourcing
Firm and Announces Long-Term Contract With Guillevin
International Inc.
MONTREAL, QUEBEC--COGNICASE Inc. announces the acquisition of
Informatique B.F.G. Limited, a company which manages computer
systems on an outsourcing basis. Concurrent with this
acquisition, Informatique B.F.G. has renewed for a three-year term
its agreement with Guillevin International Inc., its largest
customer, continuing a 22-year relationship.
Informatique B.F.G., which acts as an in-house information
technology department to its customers, was founded in 1976. The
company which has 45 employees posted revenues of US$3.5 million
in 1997. The acquisition, to be accounted for as a purchase, is
for a cash consideration of US$2.8 million and 46,377 COGNICASE
shares.
"This is a significant step towards building a strong service
offering in maintenance outsourcing and our objective of making
COGNICASE a one-stop provider of information technology
solutions," said Ronald Brisebois, President and Chief Executive
Officer of COGNICASE. "We can market these services immediately
to our growing customer base. Moreover, B.F.G. allows us to
greatly expand our testing services in connection with Year 2000
conversions, adding value to our current solutions."
Gilles Marotte, President of B.F.G. Informatique, added: "As a
COGNICASE company, we have access to greater resources and a large
potential customer base. This acquisition is a great opportunity
to grow our IT outsourcing business profitably by leveraging both
the COGNICASE name and the strong relationship we have developed
with Guillevin International.
COGNICASE, with its wholly-owned subsidiaries Icotech and Hexagon,
regrouping more than 850 people, is an integrated provider of
value-added IT software solutions and consulting services,
outsourcing business partnerships and software
conversions/migrations, differentiated by its industry-leading
toolsets, factory-based software development capabilities,
certified processes and expertise.
This news release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 (US), which involve risks and uncertainties. The
Company's actual results may differ significantly from the results
discussed in such statements. Certain factors that could cause
actual results to differ materially from those discussed in such
forward- looking statements include the ability of the Company to
(i) successfully integrate business acquisitions (ii) take
advantage of opportunities on the Year 2000 market in the short
term and (iii) provide software maintenance and platform migration
solutions outside the Year 200 market, as well as the risks
described in the Company's final prospectus dated October 2, 1997
filed with the SEC, the OSC and QSC in connection with its Public
Offering, which factors are incorporated herein by reference. |
