HP Lands $1.26 Billion Contract Services Deal with CIBC
Press release from the issuing company
PALO ALTO, Calif. & TORONTO--Sept. 17, 2002-- HP and the Canadian Imperial Bank of Commerce (CIBC), one of North America's leading financial services companies, today announced a seven-year contract to provide comprehensive IT services valued at approximately Cdn$2 billion ($1.26 Billion US Dollars). The outsourcing agreement reaffirms CIBC's choice of HP as its preferred provider of managed IT services.
Concurrently, HP and CIBC also announced HP's acquisition of CIBC's interest in the INTRIA-HP joint venture. This strategic investment by HP in IT infrastructure services resources and skills strengthens the company's ability to provide comprehensive outsourcing and adds numerous clients to its portfolio.
"We are pleased to provide CIBC all of the advantages of the newly strengthened HP Services organization," said Carly Fiorina, HP chairman and chief executive officer. "By outsourcing much of its IT infrastructure to our highly experienced services team, CIBC and its customers will enjoy the benefits of secure, responsive and cost-effective IT systems. In addition, other HP enterprise customers will benefit from the significant increase in skills and resources we are acquiring in INTRIA-HP."
Under the agreement, HP will manage a significant percentage of CIBC's IT infrastructure from desktop PCs to mission-critical systems and software from multiple vendors, including MVS and NonStop Himalaya systems; Unix, Windows NT and IBM AS/400 midrange servers; and networking gear. HP will provide related technology procurement, asset management and IT vendor management as part of its comprehensive services offering. HP also will provide application support services to enable business agility.
"With HP's expertise, global presence and outstanding customer service, this joint venture has given us a distinct advantage with our customers over the past four years," said John Hunkin, chairman and chief executive officer, CIBC. "Today's announcement confirms the extension of our relationship and the next natural step for both HP and CIBC -- it allows CIBC to focus on our core businesses, while continuing to provide HP's superior services to our customers. CIBC's customers can be assured that their services needs will be handled by the experts."
"HP's outsourcing agreement with CIBC is a testament to our ability to provide mission-critical, multi-platform, high-availability IT infrastructure services. Our relationship has evolved over the years to include services offerings in many of CIBC's business functions," said Ann Livermore, executive vice president, HP Services. "As the third largest IT services organization in the industry, we are better poised than ever to continue to drive clear business value for our customers."
INTRIA-HP was established in 1998 and provides outsourcing services to a number of Fortune 500 customers in North America. Expected to become effective on Nov. 1, 2002, at which point the outsourcing agreement also will become effective, the acquisition of INTRIA-HP will result in added depth and capability, including multi-technology skills and extensive knowledge of IT outsourcing in the financial services industry, to the HP Services business. This also expands HP's local presence in Canada.
More information, including a photo from today's announcement, is available in an online press kit at http://www.hpservicesnews.com.
CIBC is one of North America's leading financial institutions with more than eight million personal banking and business customers. CIBC offers a full range of products and services through its comprehensive electronic banking network, branches and offices across Canada, in the United States and around the world. To find other news releases and information about CIBC, visit its Media Centre at http://www.cibc.com/.
HP is a leading global provider of products, technologies, solutions and services to consumers and businesses. The company's offerings span IT infrastructure, personal computing and access devices, global services and imaging and printing. HP completed its merger transaction involving Compaq Computer Corp. on May 3, 2002. More information about HP is available at http://www.hp.com.
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