Back

Capgemini Announces Divestment of U.S. Government Solutions Subsidiary

Show me the source
Generated on: Last updated:

Capgemini Announces Sale of U.S. Subsidiary Amidst ICE Contract Scrutiny

French IT firm Capgemini has announced its decision to sell its U.S. subsidiary, Capgemini Government Solutions (CGS). This divestment follows scrutiny concerning a contract CGS signed with the U.S. Immigration and Customs Enforcement (ICE). French lawmakers, including Finance Minister Roland Lescure, had previously requested clarification on the contract.

Capgemini's Stated Rationale

Capgemini stated that U.S. legal constraints on contracts with federal entities conducting classified activities prevented the parent company from exercising appropriate control over certain CGS operations. This, the company explained, hindered alignment with the Group's overall objectives.

"Capgemini stated that U.S. legal constraints on contracts with federal entities conducting classified activities prevented the parent company from exercising appropriate control over certain CGS operations, thus hindering alignment with the Group's objectives."

The company did not explicitly link the sale directly to the ICE contract. The divestment process is scheduled to begin immediately.

Financial Impact and CEO's Comments

Financially, CGS accounts for approximately 0.4% of Capgemini's estimated revenue in 2025 and less than 2% of its revenue in the United States.

Capgemini CEO Aiman Ezzat had previously indicated that the company recently became aware of the nature of a contract awarded to CGS by the U.S. Department of Homeland Security's ICE in December 2025. Ezzat clarified that Capgemini did not have access to classified information, classified contracts, or technical operations of CGS due to U.S. security regulations related to government contracts. The company had planned to review the contract's content and CGS's contracting procedures.