CGI Announces Closing of DRT Systems International Acquisition.
CGI announced today that it has finalized the acquisition of DRT Systems International from Deloitte Consulting, effective July 1, 1999. DRT Systems International has annual revenue approaching US$100 million and provides IT consulting services to clients in the U.S. and Canada.
"We are very pleased that DRT Systems' team of 975 highly talented people has joined us," said Serge Godin, CGI's Chairman and CEO. "Our joining forces allows us to increase our presence in the U.S. and provides us with the critical mass and strong team required to become an important player in the U.S. market for large systems integration and outsourcing contracts. CGI's U.S. network now includes offices in most major cities, which we can leverage to develop our global service capabilities."
Mel Steinke, formerly President and CEO of DRT Systems and now Executive Vice-President, CGI, said, "Our people have greeted the news of this acquisition with tremendous enthusiasm. We are all excited about contributing to CGI's growth as a North American market leader. We see value in this merger for our clients, and a tremendous opportunity for our people to grow with CGI's success."
Serge Godin said that the acquisition of DRT Systems International doubles CGI's annual business in the U.S. to about US$200 million. "By 2004, our objective is for our U.S. revenues to represent half our total business in North America, versus 15% currently. We plan to apply the same strategy in growing our U.S. business as we applied successfully with CGI in Canada."
With DRT, CGI's U.S. network includes offices in: Albany (NY), Anaheim (CA), Andover (MA), Atlanta (GA), Boston (MA), Canton (MA) Chicago (IL), Cleveland (OH), Dallas (TX), Houston (TX), Kansas City (KS), Los Angeles (CA), Melville (NY), Minneapolis (MN), Nashville (TN) and New York (NY).
CGI is the largest independent information technology consulting firm in Canada and the fifth largest in North America, based on its revenue run rate of CDN$1.6 billion. Its order backlog totals approximately CDN$8 billion and the company currently has proposals outstanding for an additional CDN$4 billion in potential large contracts. CGI has 10,000 professionals and provides end-to-end IT services and business solutions to 2,000 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 and Montreal exchanges (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 statements will be achieved.
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.
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|Date:||Jul 2, 1999|
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