CGI Group acquiring Technologie Desjardins Laurentienne (TDL).
Confederation des caisses populaires et d'economie Desjardins and CGI Sign Important Agreement
MONTREAL, QUEBEC--Claude Beland, President of the Mouvement
Desjardins, and Serge Godin, Chairman of the Board and CEO of CGI,
today announced that the Confederation des caisses populaires et
d'economie Desjardins and CGI have signed an important agreement
based on which CGI is acquiring the assets and all contracts of
Technologie Desjardins Laurentienne (TDL). TDL's current annual
revenue totals $45 million. The assets are valued at $27.6
million and the contracts are initially worth $130 million over
five years. In addition, both parties agreed to preserve the jobs
involved as CGI is hiring TDL's 130 employees while also taking
responsibility for the company's other commitments.
TDL provides Desjardins Laurentian Financial Corporation (DLFC)
and other clients such as Laurentian Bank with information
technology, telecommunications, document printing and insertion
services. DLFC's user group is comprised of Desjardins Laurentian
Life Group, Societe de portefeuille du Groupe Desjardins
assurances generales, Desjardins Trust and Desjardins Securities.
Information services which belong to the cooperative sector and to
TDL's internal clients from the Confederation will not be impacted
by this transaction. It should be noted that when Desjardins
acquired the Laurentian Group, it also acquired Technologie
Laurentienne Inc. (TLI). In 1995, the Confederation des caisses
populaires et d'economie Desjardins became TLI's sole owner and
changed its name to Technologie Desjardins Laurentienne.
"We are pleased with this agreement since it provides CGI, an
information technology leader in Quebec, with stimulating growth
potential. We are also pleased that we have maintained jobs.
Meanwhile, we are reducing our operating costs, which will benefit
members of caisses populaires," said Claude Beland.
Serge Godin added that CGI is pleased to have completed this
transaction. "This allows us to increase our critical mass as a
supplier of information technology to the financial services
industry. CGI already ranks among the leaders in this sector in
Canada and this transaction further enhances our position."
CGI is the largest independent information technology consulting
firm in Canada and the sixth largest in North America. It
provides end-to-end IT services and business solutions to some
2,000 clients in Canada, the United States and in 20 countries
around the world. CGI has more than 7,500 professionals, an
annualized revenue-run rate of $1.2 billion and an order backlog
totalling approximately $6 billion. CGI's shares (GIB.A) are
included in The Toronto Stock Exchange's TSE 300 Composite and TSE
200 indexes. Website address: www.cgi.ca.
The agreement, approved by both companies, is effective
immediately and remains subject to the signing of a definitive
contract, which is expected in November 1998.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Confederation des caisses pop. et d'economie Desjardins
Pierre Brossard
Secretary General
(514) 281-7228
or
CGI Group Inc.
Ronald White
Public Affairs
(514) 841-3200 |
