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Gold/Mining/Energy : CGI Group (GIB.A) - -- Ignore unavailable to you. Want to Upgrade?

To: Link Lady who wrote (1365)	9/11/1999 9:20:00 AM
From: tom ablett	Read Replies (1) \| Respond to of 1673

From theglobeandmail.com News of Microsoft alliance propels CGI stock Word of three-year agreement sends shares up nearly 8% SIMON TUCK Technology Reporter Saturday, September 11, 1999 CGI Group Inc. shares jumped almost 8 per cent yesterday after the computer services company announced a potentially lucrative new alliance with Microsoft Corp. Word of the three-year agreement sent Montreal-based CGI's class A shares up $2.05 to $28 on the Toronto Stock Exchange and halted the stock's steady slide so far this year. CGI shares have been travelling downward since reaching a 12-month high of $39.25 in January. Jean Brassard, CGI's president and chief operating officer, said the deal is expected to be worth about $500-million in total to his company over the next three years. "It's a win-win for both sides," he said during a conference call yesterday morning. The non-exclusive alliance will see the two companies pair Microsoft's software and CGI's computer services expertise to chase new computer systems contracts in the North American telecommunications, government and financial services markets. Those sectors have been among CGI's pillars of strength in Canada -- but not in the United States to date. Montreal-based CGI, Canada's largest information technology and consulting services company and the fifth biggest in North America, now garners only about 12 per cent of its revenue south of the border. CGI said it will train at least 500 of its engineers, developers, and data base administrators so that they are Microsoft-certified. Microsoft will also provide employees to help CGI learn more about the Redmond, Wash.-based giant's products. "I think it's a great alliance," said Rajiv Das, a technology analyst at CIBC World Markets Inc. in Toronto. "Microsoft selects only a few partners on a global scale. . . . Clearly, the Microsoft name carries some weight." The deal may also be a sign that information technology experts at large North American companies are ready to start looking beyond the millennium bug and invest further in their computer systems. Officials from both CGI and Microsoft said corporate customers are getting ready to make new purchases -- particularly in the areas of E-commerce and Web-based products -- now that most large players have completed the bulk of their preparations for the year 2000 computer problem. Mr. Brassard said CGI is now confident it can report revenue of $4-billion by 2002. The company, which has been on a torrid pace of growth in recent years, has a revenue-run rate of $1.5-billion and plans further partnerships and acquisitions in the coming months. Analysts say CGI's trump card is its solid revenue base and backlog of contracts, many of which were cemented a year ago when CGI acquired Bell Sygma, Bell Canada's information technology unit. CGI, a key part of BCE Inc.'s growing corporate family, now has a 10-year outsourcing contract with Bell worth $4.5-billion and BCE has increased its stake in CGI to about 45 per cent. Report on Business Company Snapshot is available for: CGI GROUP INC.