Capgemini Finalizes Acquisition of Brazilian Firm
Capgemini has finalized its acquisition of Brazilian IT services company CPM Braxis where it has got 55% stake. The total sum of money which Capgemini paid to finalize the deal was BRL 517 million (€233 million).
Capgemini said in a statement to the media after news got out about its new acquisition that, the funds were arranged from the group’s net cash position.
Capgemini will have a total of 6,500 members in its Brazil branch, of which 5,700 come from CPM Braxis. This move will make Brazil the 6th largest country in which Capgemini is based in terms of headcount.
With a team of more than 106,000 people, Capgemini has just crossed the 100,000 headcount mark. The group’s branches are spread across 35 counties.
With this acquisition, Capgemini makes itself an important player in the Brazilian IT services market, which is witnessing a high growth. In fact, the Brazil market accounts for 47% of the Latin American IT services market. It is valued at $23 billion.
CPM Braxis is an IT consultancy firm and it has a diversified business portfolio. Its main focus is on Infrastructure Management and Applications Outsourcing.
CPM Braxis serves over 200 clients, and it has in its client list several large Brazilian businesses.
In 2009, CPM Braxis showed a growth in revenue of 12% and analysts are expecting that it will grow by 20% this year and hit the BRL 1 billion (€450 million).
Bradesco, the Brazilian bank, is the biggest client of CPM Braxis and is also one of the key shareholders of the firm. It is expected that Capgemini will be using a lot of its expertise and knowledge of the local market to conduct business.
Paul Hermelin, who is the Capgemini Group CEO said: “This acquisition marks a new step in our growth strategy.”