SkyAlyne selects CGI as technology partner for Canada's Future Aircrew Training Program

Rhea-AI Summary

CGI (TSX: GIB.A) (NYSE: GIB) and SkyAlyne have signed a 25-year agreement for Canada's Future Aircrew Training (FAcT) program. CGI will provide comprehensive IT services including cybersecurity, cloud computing, end-user services, and infrastructure management to support SkyAlyne's military pilot and aircrew training operations.

The partnership aims to consolidate three aircrew training operations under SkyAlyne and the Government of Canada's joint management, enhancing operational capabilities for the Royal Canadian Air Force (RCAF). The collaboration combines CGI's IT expertise with SkyAlyne's training capabilities to deliver innovative solutions in military aviation training.

Positive

• Secured a long-term 25-year contract with SkyAlyne
• Expansion in government defense sector through comprehensive IT services contract
• Strategic partnership strengthens CGI's position in Canadian military aviation sector

Negative

• None.

Insights

Technology Analyst

This strategic partnership marks a significant milestone in modernizing Canada's military aircrew training infrastructure. The 25-year agreement positions CGI to deliver critical IT services including cybersecurity, cloud computing and infrastructure management for the FAcT program. While the exact contract value isn't disclosed, long-term government contracts of this nature typically represent substantial recurring revenue streams.

The partnership aligns with CGI's core strengths in government IT services and positions them favorably for future defense-related contracts. The consolidation of three training operations under single management should create operational efficiencies and technological synergies. The deal reinforces CGI's position in the defense sector and demonstrates their ability to secure long-term, high-value government contracts.

Defense Industry Analyst

The FAcT program represents a strategic consolidation of Canada's military aircrew training capabilities. By bringing three separate training operations under unified management, this partnership promises improved operational efficiency and standardization of training protocols. CGI's involvement as the technology backbone will be important in modernizing the training infrastructure and ensuring cybersecurity compliance with military standards.

The 25-year commitment indicates the government's long-term vision for military aircrew training and provides CGI with a stable revenue stream in the defense sector. While financial terms aren't disclosed, similar military training technology contracts typically command premium pricing due to security requirements and specialized nature of services.

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www.cgi.com/newsroom

New 25-year Canadian partnership aims to reimagine aircrew training

OTTAWA, ON, Dec. 17, 2024 /PRNewswire/ - CGI, (TSX: GIB.A) (NYSE: GIB) one of the largest independent IT and business consulting services firms in the world, and SkyAlyne, a leading provider of military pilot and aircrew training in Canada, announce the signing of a 25-year agreement.

This strategic partnership is set to build SkyAlyne's operational capabilities, streamline processes, and drive innovation for Canada's Department of National Defence Future Aircrew Training (FAcT) program. Under the terms of the agreement, CGI will deliver a comprehensive suite of services, including cybersecurity, cloud computing, end-user services and infrastructure management. CGI's extensive experience in IT and consulting will help SkyAlyne reimagine aircrew training for the Royal Canadian Air Force (RCAF), consolidating three aircrew training operations under SkyAlyne and the Government of Canada's joint management.

"SkyAlyne has found the ideal Canadian-founded information technology partner to help us design the IM/IT solution for the FAcT program and deliver on execution," said Kevin Lemke, SkyAlyne's senior executive. "CGI is perfectly positioned to help shape and execute our information technology roadmap and infrastructure and help us drive operational excellence. This partnership will help SkyAlyne deliver a world-leading military aircrew training solution to the Royal Canadian Air Force, ensuring RCAF aircrew are equipped with the skills and capabilities necessary to succeed in challenging conditions at home and around the world."

"This long-term partnership represents a significant milestone for both organizations," said Michael Godin, CGI President, Canada. "By combining CGI's IT and business consulting expertise with SkyAlyne's industry-leading training capabilities, we are poised to deliver unparalleled value and innovation in the aviation training sector."

CGI has a proven history of successfully delivering innovative solutions for governments and industry by combining deep business and mission knowledge with next-generation technologies.

About CGI
Founded in 1976, CGI is among the largest independent IT and business consulting services firms in the world. With 90,250 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2024 reported revenue is $14.68 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.

About SkyAlyne: The Future of Aircrew Training
SkyAlyne is the Future Aircrew Training (FAcT) program provider for the Royal Canadian Air Force. SkyAlyne is a team of defence, training, simulation, and aviation industry experts assembled from across Canada, working to prepare the next generation of RCAF pilots and aircrew. SkyAlyne was formed in 2018 as a partnership between CAE and KF Aerospace, two Canadian aviation, training, and defence leaders. The partnership was built to jointly answer the call for the Government of Canada's FAcT program. In 2023 SkyAlyne was named the preferred bidder, and in 2024, was officially contracted to partner with the RCAF and deliver the FAcT program.

Learn more: SkyAlyne.ca

Forward-looking information and statements
This press release contains "forward-looking information" within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and other applicable United States safe harbours. All such forward-looking information and statements are made and disclosed in reliance upon the safe harbour provisions of applicable Canadian and United States securities laws. Forward-looking information and statements include all information and statements regarding CGI's intentions, plans, expectations, beliefs, objectives, future performance, and strategy, as well as any other information or statements that relate to future events or circumstances and which do not directly and exclusively relate to historical facts. Forward-looking information and statements often but not always use words such as "believe", "estimate", "expect", "intend", "anticipate", "foresee", "plan", "predict", "project", "aim", "seek", "strive", "potential", "continue", "target", "may", "might", "could", "should", and similar expressions and variations thereof. These information and statements are based on our perception of historic trends, current conditions and expected future developments, as well as other assumptions, both general and specific, that we believe are appropriate in the circumstances. Such information and statements are, however, by their very nature, subject to inherent risks and uncertainties, of which many are beyond the control of CGI, and which give rise to the possibility that actual results could differ materially from our expectations expressed in, or implied by, such forward-looking information or forward-looking statements. These risks and uncertainties include but are not restricted to: risks related to the market such as the level of business activity of our clients, which is affected by economic and political conditions, additional external risks (such as pandemics, armed conflict, climate-related issues and inflation) and our ability to negotiate new contracts; risks related to our industry such as competition and our ability to develop and expand our services, to penetrate new markets, and to protect our intellectual property rights; risks related to our business such as risks associated with our growth strategy, including the integration of new operations, financial and operational risks inherent in worldwide operations, foreign exchange risks, income tax laws and other tax programs, the termination, modification, delay or suspension of our contractual agreements, our expectations regarding future revenue resulting from bookings and backlog, our ability to attract and retain qualified employees, to negotiate favourable contractual terms, to deliver our services and to collect receivables, to disclose, manage and implement environmental, social and governance (ESG) initiatives and standards, and to achieve ESG commitments and targets, including without limitation, our commitment to net-zero carbon emissions by 2030, as well as the reputational and financial risks attendant to cybersecurity breaches and other incidents, and financial risks such as liquidity needs and requirements, maintenance of financial ratios, interest rate fluctuations and the discontinuation of major interest rate benchmarks and changes in creditworthiness and credit ratings; as well as other risks identified or incorporated by reference in this press release, in CGI's annual MD&A and in other documents that we make public, including our filings with the Canadian Securities Administrators (on SEDAR+ at www.sedarplus.ca) and the U.S. Securities and Exchange Commission (on EDGAR at www.sec.gov). Unless otherwise stated, the forward-looking information and statements contained in this press release are made as of the date hereof and CGI disclaims any intention or obligation to publicly update or revise any forward-looking information or forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. While we believe that our assumptions on which these forward-looking information and forward-looking statements are based were reasonable as at the date of this press release, readers are cautioned not to place undue reliance on these forward-looking information or statements. Furthermore, readers are reminded that forward-looking information and statements are presented for the sole purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Further information on the risks that could cause our actual results to differ significantly from our current expectations may be found in the section titled Risk Environment of CGI's annual MD&A, which is incorporated by reference in this cautionary statement. We also caution readers that the above-mentioned risks and the risks disclosed in CGI's annual MD&A and other documents and filings are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial could also have a material adverse effect on our financial position, financial performance, cash flows, business or reputation.

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SOURCE CGI Inc.

FAQ

What services will CGI (GIB) provide in the 25-year SkyAlyne partnership?

CGI will provide cybersecurity, cloud computing, end-user services, and infrastructure management services for SkyAlyne's Future Aircrew Training program.

How long is CGI's (GIB) contract with SkyAlyne for the FAcT program?

The strategic partnership agreement between CGI and SkyAlyne is set for 25 years.

What is the purpose of CGI's (GIB) partnership with SkyAlyne?

The partnership aims to build SkyAlyne's operational capabilities, streamline processes, and drive innovation for Canada's Department of National Defence Future Aircrew Training program.

How will the CGI (GIB) partnership affect Royal Canadian Air Force training?

The partnership will help consolidate three aircrew training operations under SkyAlyne and the Government of Canada's management, ensuring RCAF aircrew are equipped with necessary skills and capabilities.