French tech company Capgemini to sell US unit – Business News
French IT company Capgemini will sell its US subsidiary Capgemini Government Solutions, it stated on Sunday, after coming beneath strain to elucidate a contract the latter signed with US immigration enforcement company ICE.
French lawmakers, together with Finance Minister Roland Lescure, had requested the company to shed mild the contract amid concern over the ways utilized by ICE brokers following the deadly capturing of two US residents in Minnesota final month.
“Capgemini considered that the usual legal constraints imposed in the United States on contracting with federal entities conducting classified activities did not allow the Group to exercise appropriate control over certain aspects of this subsidiary’s operations in order to ensure alignment with the Group’s objectives,” it stated in a assertion.
French lawmakers requested the Capgemini to make clear its contract with ICE amid concern over the ways utilized by the company’s brokers. Getty Images
Capgemini stated the method of divestment could be “initiated immediately” however didn’t say whether or not the sale was because of CGS’ contract with ICE.
CGS accounts for 0.4% of the CapGemini’s estimated income in 2025 and fewer than 2% of its income within the US, the group stated.
Capgemini CEO Aiman Ezzat had stated final week that the company had not too long ago change into conscious of the character of a contract awarded to CGS by the US Department of Homeland Security’s Immigration and Customs Enforcement in December.
Capgemini CEO Aiman Ezzat stated the company solely not too long ago turned conscious of the character of a contract with ICE. Bloomberg through Getty Images
However, Capgemini didn’t have entry to any categorised data, categorised contracts, or something regarding the technical operations of CGS, as required by US security laws associated to authorities contracts, he stated.
He added that the company would review the content material and scope of this contract and CGS’ contracting procedures.
