The City of Västerås signs £27 million deal with Logica, now part of CGI, to manage its IT operations
The City of Västerås has signed an agreement with Logica, now part of CGI, (TSX: GIB.A) (NYSE: GIB), a leading provider of information technology and business process services, to outsource its IT operations.
The £27 million (SEK 285 million) deal will see CGI become responsible for the city’s entire IT operation for the next five years including infrastructure, workplace IT application management, service desk printing services and resource consultants. The agreement also includes an option for an extension of the delivery for another two years.
Under the agreement CGI will move Västerås’s current IT-infrastructure services to CGI’s own data centres and begin an extensive conversion to a platform based on modern large-scale industrial infrastructure. This will allow Västerås to lower their cost and get more efficiency into their IT-operations. In addition all employees that are affected by this agreement will be transferred to CGI.
“This partnership with CGI will allow us to provide affordable business support in a flexible way like never before,” said Mikael Lagergren, CIO in the City of Västerås, Executive Office. “Lower threshold costs help facilitate the introduction of new technologies without the need for the city itself to invest in technology solutions or risky and costly development projects. Through working with CGI we will be able to meet the municipality's current and future needs.”
“We are very pleased and proud to be chosen by Västerås to host and manage their IT operations,” said Bengt-Goran Kangas, Head of the Swedish Public Sector at Logica, now part of CGI. “We look forward to working with the City of Västerås in developing operational services that support and develop the needs of both the municipality and its citizens. Västerås has a well-developed IT strategy and a deep insight into the benefits of an outsourced IT operation, such as flexibility, proactivity and cost savings. All of which will be open to the City of Västerås over the next few years.”
Founded in 1976, CGI Group Inc. is the sixth largest independent information technology and business process services firm in the world. With approximately 72,000 professionals located in offices and global delivery centers in the Americas, Europe and Asia Pacific, CGI offers a comprehensive portfolio of services including high-end business and IT consulting, systems integration, application development and maintenance, infrastructure management as well as more than 100 proprietary solutions. Further to the recent completion of the Logica acquisition, CGI’s annualized revenue is approximately $10.4 billion, with an estimated order backlog of approximately $17.7 billion, CGI’s shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in the FTSE4Good Index. Website: www.cgi.com.
All statements in this press release that do not directly and exclusively relate to historical facts constitute “forward-looking statements” within the meaning of that term in Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and are “forward-looking information” within the meaning of Canadian securities laws. These statements and this information represent CGI’s intentions, plans, expectations and beliefs, and are subject to risks, uncertainties and other factors, of which many are beyond the control of the Company. These factors could cause actual results to differ materially from such forward-looking statements or forward-looking information. These factors include but are not restricted to: the timing and size of new contracts; acquisitions and other corporate developments; the ability to attract and retain qualified members; market competition in the rapidly evolving IT industry; general economic and business conditions; foreign exchange and other risks identified in the press release, in CGI’s annual and quarterly Management’s Discussion and Analysis (“MD&A”), in CGI’s Annual Report, in CGI’s Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in the Company’s Annual Information Form filed with the Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as assumptions regarding the foregoing. The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “foresee,” “plan,” and similar expressions and variations thereof, identify certain of such forward-looking statements or forward-looking information, which speak only as of the date on which they are made. In particular, statements relating to future performance are forward-looking statements and forward-looking information. CGI disclaims any intention or obligation to publicly update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable law. Readers are cautioned not to place undue reliance on these forward-looking statements or on this forward-looking information.
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Investors and media
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+1 514 841-3355
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+46 (0)70-851 7732
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+46 (0) 8-775 05 84