Capgemini acquires majority stake in CPM Braxis
Capgemini, a provider of consulting, technology and outsourcing services, has just reached an agreement with the shareholders of CPM Braxis to acquire a 55 percent stake in the Brazilian IT services company for a total amount of approximately €233 million. With a client base of major Brazilian and international companies, particularly in the financial sector, CPM Braxis expects to record 2010 revenues of around €450 million.
According to Capgemini the deal will enable the company to boost its presence and widen its client base in Brazil. CPM Braxis will also benefit from Capgemini’s global reach, methodologies and network of alliances to serve its own clients — both in Brazil and around the world.
José Luiz Rossi, Chief Executive Officer of CPM Braxis said, “We will expand our client base by making our services available to Capgemini’s international clients present in Brazil, and will also be able to offer Capgemini’s global expertise to support our major Brazilian clients in their international development projects.”
With over 5,500 employees, CPM Braxis’ business portfolio is focused around application outsourcing and enterprise application services, and infrastructure integration and infrastructure services, majority of which is delivered through multi-year contracts. CPM Braxis serves over 200 clients, and is especially strong in the financial sector. Its biggest client, major Brazilian bank Bradesco, was also its biggest shareholder prior to the transaction. CPM Braxis is also present in the telecom sector as well as in manufacturing and utilities.
The enterprise value of CPM Braxis is estimated at €437 million and Capgemini has the option to buy the remainder of CPM Braxis’ capital (45 percent); and the existing shareholders have an option to sell their remaining shares. However, these options can only be exercised between the third and the fifth 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).
“The acquisition of CPM Braxis — a step in line with the Group’s growth strategy — allows us to fulfill three objectives: to extend our presence in a fast-growing country; to support our global clients in the regions where they focus their investment, and to strengthen our Group with the addition of a experienced management team, and more than 5,500 dynamic employees,” said Paul Hermelin, Chief Executive Officer of Capgemini.
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