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Acquisition expands CGI's managed service
offerings to more than 90 credit unions nationwide
MONTRÉAL, July 4, 2024
/PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB) today announced
the acquisition of Celero's credit union business serving clients
across Canada, consisting of
master services agreements that span managed services, core
banking, digital banking and related IT services. The strategic
acquisition complements and expands CGI's core banking service
offerings and digital banking solutions to the Canadian credit
union sector.
Under the agreement, CGI acquires the managed services business
with more than 90 credit unions and creates new partnerships with
Credit Union Central of Manitoba
(CUCM), Alberta Central and SaskCentral. The business will be
seamlessly integrated into CGI's existing operations, ensuring
continuity and quality of service for all clients. As part of the
agreement, more than 150 Celero employees will join CGI,
benefitting from the company's ownership-based culture which will
ensure smooth onboarding as well as future professional development
opportunities.
"We extend a warm welcome to Celero's team and the valued
banking expertise each person brings to clients and now to CGI,"
says Michael Godin, President,
Canada operations at CGI. "This
acquisition aligns with our strategic goals and enhances our
capabilities to best partner with our clients. The addition of
Celero's operations will further deepen CGI's presence and
positioning across Canada for this
important sector which serves hundreds of thousands of Canadians
nationwide. This transaction is consistent with our build and buy
profitable growth strategy, while serving as a catalyst for future
organic growth."
"CGI is the ideal IT services firm to continue the legacy of
outstanding service Celero has established," says Curtis
Wennberg, CEO, CUCM and Chair of Celero. "We believe this
transaction will provide a great path forward for the credit union
system overall as well as for Celero's employees. Combining
Celero's expert knowledge of credit unions' needs with CGI's global
portfolio of services and solutions will create new opportunities
for growth and innovation in the credit union system."
As a result of this transaction, CGI will enhance and expand its
services to credit unions. CGI has been serving Canadian credit
unions with a range of innovative digital offerings, including
core and online banking solutions and professional services, for
nearly 30 years.
About CGI
Founded in 1976, CGI is among the largest
independent IT and business consulting services firms in the world.
With 90,000 consultants and professionals across the globe, CGI
delivers an end-to-end portfolio of capabilities, from strategic IT
and business consulting to systems integration, managed IT and
business process services and intellectual property solutions. CGI
works with clients through a local relationship model complemented
by a global delivery network that helps clients digitally transform
their organizations and accelerate results. CGI Fiscal 2023
reported revenue is CA$14.30 billion and CGI shares are listed on
the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.
Forward-looking information and statements
This press
release contains "forward-looking information" within the meaning
of Canadian securities laws and "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and other applicable United States safe harbors. All such
forward-looking information and statements are made and disclosed
in reliance upon the safe harbor provisions of applicable Canadian
and United States securities
laws.
Forward-looking information and statements include all
information and statements regarding CGI's intentions, plans,
expectations, beliefs, objectives, future performance, and
strategy, as well as any other information or statements that
relate to future events or circumstances and which do not directly
and exclusively relate to historical facts. Forward-looking
information and statements often but not always use words such as
"believe", "estimate", "expect", "intend", "anticipate", "foresee",
"plan", "predict", "project", "aim", "seek", "strive", "potential",
"continue", "target", "may", "might", "could", "should", and
similar expressions and variations thereof. These information and
statements are based on our perception of historic trends, current
conditions and expected future developments, as well as other
assumptions, both general and specific, that we believe are
appropriate in the circumstances. Such information and statements
are, however, by their very nature, subject to inherent risks and
uncertainties, of which many are beyond the control of CGI, and
which give rise to the possibility that actual results could differ
materially from our expectations expressed in, or implied by, such
forward-looking information or forward-looking statements.
These risks and uncertainties include but are not restricted to:
risks related to the market such as the level of business activity
of our clients, which is affected by economic and political
conditions, additional external risks (such as pandemics, armed
conflict, climate-related issues and inflation) and our ability to
negotiate new contracts; risks related to our industry such as
competition and our ability to develop and expand our services, to
penetrate new markets, and to protect our intellectual property
rights; risks related to our business such as risks associated with
our growth strategy, including the integration of new operations,
financial and operational risks inherent in worldwide operations,
foreign exchange risks, income tax laws and other tax programs, the
termination, modification, delay or suspension of our contractual
agreements, our expectations regarding future revenue resulting
from bookings and backlog, our ability to attract and retain
qualified employees, to negotiate favorable contractual terms, to
deliver our services and to collect receivables, to disclose,
manage and implement environmental, social and governance (ESG)
initiatives and standards, and to achieve ESG commitments and
targets, including without limitation, our commitment to net-zero
carbon emissions by 2030, as well as the reputational and financial
risks attendant to cybersecurity breaches and other incidents, and
financial risks such as liquidity needs and requirements,
maintenance of financial ratios, interest rate fluctuations and the
discontinuation of major interest rate benchmarks and changes in
creditworthiness and credit ratings; as well as other risks
identified or incorporated by reference in this press release, in
CGI's annual MD&A and in other documents that we make public,
including our filings with the Canadian Securities Administrators
(on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and
Exchange Commission (on EDGAR at www.sec.gov).
Unless otherwise stated, the forward-looking information and
statements contained in this press release are made as of the date
hereof and CGI disclaims any intention or obligation to publicly
update or revise any forward-looking information or forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by applicable law. While we
believe that our assumptions on which these forward-looking
information and forward-looking statements are based were
reasonable as at the date of this press release, readers are
cautioned not to place undue reliance on these forward-looking
information or statements.
Furthermore, readers are reminded that forward-looking
information and statements are presented for the sole purpose of
assisting investors and others in understanding our objectives,
strategic priorities and business outlook as well as our
anticipated operating environment. Readers are cautioned that such
information may not be appropriate for other purposes. Further
information on the risks that could cause our actual results to
differ significantly from our current expectations may be found in
the section titled Risk Environment of CGI's annual MD&A, which
is incorporated by reference in this cautionary statement. We also
caution readers that the above-mentioned risks and the risks
disclosed in CGI's annual MD&A and other documents and filings
are not the only ones that could affect us. Additional risks and
uncertainties not currently known to us or that we currently deem
to be immaterial could also have a material adverse effect on our
financial position, financial performance, cash flows, business or
reputation.
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SOURCE CGI Inc.