Capgemini finalises acquisition of CPM Braxis in Brazil
15/10/2010
Capgemini has finalised the acquisition of a 55% interest in Brazilian IT services company CPM Braxis for a total sum of BRL 517 million (€233 million).

Fuente:   www.consultant-news.com    Fecha: 15.10.2010

Capgemini said the acquistion has been funded using the group’s net cash position. With 6,500 team members, of which 5,700 come from CPM Braxis, the move sees Brazil become the group’s sixth largest country in terms of headcount. Capgemini has also just crossed the 100,000 headcount mark, with a team of more than 106,000 people, in 35 countries.

With this deal, Capgemini becomes a major player in the high-growth Brazilian IT services market, which represents 47% of the Latin American IT services market, valued at $23 billion.

CPM Braxis boasts a diversified business portfolio focused on Applications Outsourcing and Infrastructure Management, serving more than 200 clients, including large Brazilian companies. The company saw revenues growth of 12% in 2009 and should grow by nearly 20% this year, to hit BRL 1 billion (€450 million). Its operating margin, prior to exceptional provision for social contribution, should reach 6% and looks set to rise over the years to come. CPM Braxis is especially strong in the Financial Sector. Its biggest client, major Brazilian bank Bradesco, remains a key shareholder in the company and Capgemini will be able to draw on its expertise and knowledge of the local market. CPM Braxis is also present in the telecoms sector, as well as in manufacturing and utilities.

For Paul Hermelin, Capgemini Group CEO: “This acquisition marks a new step in our growth strategy, allowing us to extend our presence in a fast-growing market. Long-term, our objective is to make 10% of our revenues in the emerging markets.”

For José Luiz Rossi, CEO of the CPM Braxis Group: “Joining Capgemini will enable us to benefit from the experience of a truly international Group with a worldwide delivery network. We will be combining our strengths to serve Capgemini’s international clients who are present in Brazil and accompany our own large Brazilian clients in their international development projects.”

Capgemini has an option to buy the remainder of CPM Braxis’ capital (45%), and the existing shareholders have an option to sell their remaining shares. These options can only be exercised between the 3rd and the 5th anniversary of the closing date (on the basis of an estimated price based on fair market value at the time of the exercise of these options). Capgemini has consolidated CPM Braxis in its accounts since October 6, and will recognize a balance sheet liability, representing the estimated value of the 45% stake in the company at the time of the exercise of the options.