From the Wires
Insurance company LahiTapiola and CGI to establish a new company in Finland
The new company, LTC-Otso Ltd, will provide information and communication technology (ITC) services to LahiTapiola Group and its subsidiaries
By: Marketwired .
Jan. 15, 2013 08:06 AM
HELSINKI, FINLAND -- (Marketwire) -- 01/15/13 -- Tapiola Data, a subsidiary of Finnish insurance company LahiTapiola Group one of the largest insurance companies in Finland, and Logica Suomi Oy, now part of CGI (NYSE:GIB)(TSX:GIB.A), a leading provider of information technology and business process services, have signed an agreement to establish a new company LTC-Otso Ltd. The anticipated revenue for LTC Otso will be 150 million euros over the next 5 years.
The purpose of the new company is to develop and provide technology services supporting the banking and insurance business of LahiTapiola Group, with the goal of delivering increased efficiencies and innovation in an increasingly competitive market. The Managing Director of LTC-Otso is Jukka Tarkiainen.
"We are confident that the new company meets the current market need for high quality technology services required by and designed specifically for the banking and insurance sector", says CIO Esa Viitamaki from LahiTapiola.
The new company will deliver development, consulting and application management services of information systems. The services will be focused on addressing the business needs of property, casualty, life and pension insurance business, banking, asset management, and real estate investment.
"Information systems and technology are at the very core of the banking and insurance sectors. By combining the deep domain expertise, track record and international footprint of the founding companies, we can offer unparalleled competitive, innovative and efficient services", said Heikki Nikku, Senior Vice-President, CGI in Finland.
Tapiola Data's personnel of 240 and approximately 40 people from Logica, now part of CGI, will join the new company. LTC-Otso will start operating on the 1st of February 2013.
Founded in 1976, CGI Group Inc. is the fifth largest independent information technology and business process services firm in the world. With approximately 72,000 members 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 a wide range of proprietary solutions. Further to the recent completion of the Logica acquisition, CGI's annualized revenue is approximately C$10.4 billion, with an estimated order backlog of approximately C$17.6 billion; CGI's shares are listed on the NYSE (GIB) and the TSX (GIB.A) and are included in the FTSE4Good Index. Website: www.cgi.com.
Tapiola and Local Insurance announced their merger in February 2012. The merger will take place in the beginning of 2013. LocalTapiola (in Finnish Lahitapiola) financial group is based on the mutual company form offering comprehensive insurance, banking and investment services for private, entrepreneur, corporate and organisational customers. LocalTapiola will become Finland's leading non-life insurer. The market share in non-life insurance is 30 per cent. The premiums written in non-life insurance are approximately EUR 1 billion. The number of owner-customers is approximately 1.5 million. www.lahitapiola.fi.
CGI Forward-Looking Statements
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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