Cognicase and National Bank announce definitive agreements for strategic partnership
Montreal, 1 June 2000 -
COGNICASE Inc. (TSE: "COG", Nasdaq: "COGI") and the National Bank of Canada (TSE : "NA") announced today the final closing of their strategic partnership within the anticipated time frame. COGNICASE has thereby acquired SIBN Inc., National Bank's information technology and e-commerce subsidiary. In addition, as part of this transaction, National Bank group invested Cdn$20 million in COGNICASE for 9,291,008 Common Shares of COGNICASE, representing approximately 35% of the Company's share capital on a fully diluted basis.
"Under this partnership, COGNICASE is now the preferred supplier of IT services to the Bank and its subsidiaries for a 10-year period, resulting in estimated revenues of approximately Cdn$1.2 billion over the 10 years, including other SIBN revenues. As preferred IT supplier, COGNICASE is positioned to obtain a major portion of the additional IT spending by the Bank and its subsidiaries. COGNICASE is also National Bank's preferred partner for all of the Bank's e-commerce product and services offerings, including wireless solutions," said Ronald Brisebois, President and Chief Executive Officer of COGNICASE. "In addition, as a result of the transfer to COGNICASE of intellectual property rights related to e-commerce software under this agreement, COGNICASE intends to deploy a suite of business and e-banking solutions that will be commercialized in the United States and Europe," added Mr. Brisebois.
Réal Raymond, President, Personal and Commercial Bank of National Bank, stated: "Thanks to the combination of COGNICASE and SIBN resources and assets, National Bank will be able to expand its range of e-services and develop new business solutions. Through this association with COGNICASE, National Bank demonstrates its position as a major player in the IT market. This is a unique agreement. E-commerce is strategic to the National Bank for providing financial services to its clients. COGNICASE will be a key element in this strategy."
COGNICASE is an innovative e-business integrator and Wireless/Internet electronic solutions provider, with offices in several major North American and European business centers. Based on its results-driven approach, technologies, international IT engineering/hosting center, COGNICASE offers innovative solutions that contribute to the business success of its customers in the digital economy. COGNICASE consists of the following four business units: Outsourcing and Integration, Electronic Business Solutions, Wireless/Internet Technologies and Internet Portals. COGNICASE employs around 3,500 professionals in several countries, including Canada, the United States, France, Spain, Italy, Belgium, the Netherlands and Australia.
About National Bank of Canada
The National Bank of Canada is an integrated group whose mission is to provide comprehensive financial services to consumers, small and medium-sized enterprises and large corporations in its core market, while offering specialized services to its clients elsewhere in the world. The National Bank offers a full array of banking services, including all the investment banking services required by large corporations. It is an active player on international capital markets and, through its subsidiaries, is involved in securities brokerage, insurance and wealth management as well as mutual fund and retirement plan management. The National Bank has assets of over $70 billion and, together with its subsidiaries, employs over 17,000 people. Its shares are listed on the Toronto Stock Exchange.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (US), which involve risks and uncertainties. As a result of a number of factors, including factors that COGNICASE may not currently foresee, COGNICASE's actual results could differ materially from those set forth in the forward-looking statements. Certain other factors that might cause COGNICASE's actual results to differ materially from the forward-looking statements include the Company's ability to (i) successfully develop additional products and services and new applications for its existing products and services and otherwise respond to rapid changes in technology, (ii) successfully compete in its industry for customers and developers and other personnel with expertise in information technology, (iii) successfully identify and consummate acquisitions on favorable terms and integrate acquired businesses, and (iv) successfully manage its growth and changing business, as well as those factors set forth under the heading "Risk Factors" COGNICASE's 1999 annual report.
For more information, contact:
||National Bank of Canada
|Chief Financial Officer
||Media Relations and Financial
|Tel. :(514) 876-9077
||Public Relations Officer
|Web site : www.cognicase.com
||Tel. : (514) 394-6990