Global IT consultancy Capgemini on Thursday said it will buy majority stake in Brazilian CPM Braxis for 233 million euros $299 million) in a bid to boost its presence in the emerging countries.
Under the terms of the transaction, French firm Capgemini which has a significant presence in India, will acquire 55 per cent of the share of CPM Braxis, representing a total amount of 233 million euros, it said in a statement.
Capgemini has a strong presence across seven cities in India, primarily Mumbai, Bangalore, Hyderabad, Kolkata, Chennai, Pune and Delhi.
The company's in India strength was at 26,000 in June 2010. Besides, Capgemini has the option on certain dates each year to buy the remaining stake of CPM Braxis and the existing shareholders have an option to sell rest of their stake, it added.
"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," Capgemini CEO Paul Hermelin said.
The deal, which is expected to close by October, will be funded through the the company's net cash position. CMP Braxis has an enterprise value of 437 million euros and it forecasts 450 million euros revenue in the full year.
The Brazilian firm will benefit from Capgemini's assets notably its global reach, methodologies and network of alliances, to serve its own clients, both in Brazil and around the world.
CPM Braxis has about 5,500 employees, while Capgemini employs over 95,000 people worldwide in more than 30 countries. Its' Indian employee strength represents 27 per cent of the global headcount.
