Capgemini has announced the planned sale of its U.S. unit, Capgemini Government Solutions, after pressure to explain a contract with U.S. immigration agency ICE. The company said U.S. legal restrictions on classified federal contracts limited its ability to exercise full control over parts of the subsidiary. The sale is presented as a governance step to ensure alignment with the group's objectives.
Capgemini to Sell U.S. Unit After Scrutiny Over ICE Contract
FILE PHOTO: The Capgemini logo is seen at the company's office in Issy-les-Moulineaux near Paris France, February 9, 2024. REUTERS/Gonzalo Fuentes/File Photo
PARIS, Feb 1 (Reuters) - French IT services firm Capgemini said on Sunday it will sell its U.S. unit, Capgemini Government Solutions, citing U.S. legal constraints that limit its ability to oversee parts of the business.
The announcement follows heightened scrutiny over a contract the company signed with U.S. immigration enforcement agency ICE, which has faced growing criticism amid weeks of protests over President Donald Trump's immigration policies.
In a statement, Capgemini said:
"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."
Capgemini indicated the sale is intended to address governance concerns by separating operations that, under U.S. federal contracting rules, the group cannot fully control. The company framed the move as necessary to ensure its broader corporate objectives and standards are maintained.
(Reporting by Sybille de La Hamaide and Bertrand Boucey; Editing by Alexander Smith)
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