Open Solutions buys CGI's credit union services unit
Open Solutions Inc. (NASDAQ:OPEN), a provider of integrated data processing technologies for banks and credit unions, and CGI Group Inc. (CGI) (NYSE: GIB; TSX: GIB.SV.A), among the largest independent information technology and business process services firms, today announced that they have signed an asset purchase agreement under which Open Solutions has acquired CGI's US Services to Credit Unions business unit and its CyberSuite product line.
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CGI's US Services to Credit Unions is a provider of core processing for approximately 180 credit unions in the United States. The unit also provides additional services such as loan origination and Web hosting solutions for credit unions. Under the terms of the agreement, Open Solutions acquired CGI's US Services to Credit Unions for approximately US$24 million in cash.
Open Solutions serves the financial services marketplace of banks and credit unions in North America with an emphasis on providing institutions with a distinct technological, service and competitive advantage. The US Services to Credit Unions business unit serves the credit union marketplace and reported revenue of approximately US$16 million.
US Services to Credit Unions will become part of Open Solutions' Core Systems Group and will continue to be located and run operations from Southfield, Michigan. Industry veteran Mike Evans of Open Solutions, who has more than 25 years of experience serving credit unions, will be working closely with the US Services to Credit Unions' management team to oversee integration planning and day-to-day activities.
CGI president and COO, Michael Roach said "As part of our ongoing business practice, we are continually assessing our operations to ensure that we are in line with our strategy in each of our geographic markets. With respect to our credit union assets in the United States, we came to the conclusion that the interests of our clients and professionals are best served through our decision to divest and align these operations with Open Solutions."
Gary Daniel, Open Solutions senior vice president and general manager - Credit Union Group added: "Open Solutions is committed to continually providing the credit union marketplace with innovative products and services. We believe this acquisition will allow us to further develop our already strong presence in the credit union marketplace. We look forward to working with the US Services to Credit Unions business unit and our new clients as we work together to provide them with even more choices and access to Open Solutions' open relational core data processing technology and suite of complementary integrated strategic solutions."
Open Solutions chairman and CEO Louis Hernandez, Jr. said: "On behalf of all of us at Open Solutions, I am very pleased to be welcoming employees and clients of CGI's US Services to Credit Unions business unit into the Open Solutions family. We believe that this acquisition will be a natural fit into our organisation. Open Solutions is fully focused on providing the financial services industry with innovative technology products designed to help them better compete in today's ever diversifying marketplace. We are proud to have become the torch bearer for growth and innovation in our industry. We are confident that the client base of CGI's US Services to Credit Unions will benefit from this new relationship, our emphasis on providing superior service as well as from the industry focused technology and client-focused solutions that we offer."