CGI (TSX: GIB.A) (NYSE: GIB) and Northern Savings Credit Union have entered into a 10-year agreement for the outsourcing of core banking services.
In addition, CGI entered into a definitive agreement to acquire the business of Solutions Only Financial Technologies Ltd., a Northern Savings indirect subsidiary, which will augment CGI’s industry-leading banking solutions portfolio and strategy of providing clients with high-value IP-based services. The closing of the transaction is subject to customary closing conditions. As part of the acquisition, 31 Solutions Only employees will join CGI.
Northern Savings selected CGI as its long-term strategic IT partner to support their future growth, improve operational excellence and reduce risk. The transition to CGI will also enable Northern Savings and other credit unions to benefit from end-to-end hosting and support services that will increase quality and return on investment.
“We chose CGI because of its strong banking and outsourcing experience and track record across Canada,” said Bill Nicholls, Acting Interim President and Chief Executive Officer of Northern Savings. “We’re excited to enter into this long-term partnership to not only help grow our business but enable us to focus on providing excellent member service.”
“CGI works with more than 110 credit unions across Canada, representing 3 million end customers. We are pleased to add Northern Savings as a client and to enhance our credit union and retail banking capabilities with the addition of the Solutions Only portfolio and its employees. This reinforces our commitment to this market and makes us one of the country’s largest providers of credit union services and solutions,” said Jay MacIsaac, Senior Vice-President, CGI.
“We’re very pleased that Northern Savings has put their trust in us to be their technology partner and are thrilled to be welcoming the Solutions Only team to CGI,” added Paul Mackley, CGI’s Vice President, Services to Credit Unions.