Capgemini pushes his pawns in Brazil

Capgemini has signed a big deal. In offering a 55% stake CPM Braxis, a leading Brazilian IT services, the French company moved to a country with promising prospects, and strengthens its financial services, an activity that is the workhorse of the Brazilian . Capgemini has spent 233 million euros, based on an enterprise value of 437 million euros to acquire the entire capital. Capgemini may exercise its option to purchase the remaining 45% between the third and fifth year following the date of acquisition.

This price may seem a bit high at first sight. But it seems the price to pay to enter a market enjoying strong growth: 10% per year until 2014 according to Gartner.Especially as CPM Braxis seem to do much better than the market's turnover is expected to 450 million euros in 2010, up 20% and operating margin should be about 6%.

"Brazil is an important market, it is twice as important as the Chinese market," said CEO Paul Hermelin, during a conference call.

IBM, Accenture, HP and Unisys loyal

Brazil represents 47% of the IT services market in Latin America, valued at $ 23 billion, says Capgemini.CPM Braxis employs 5,500 employees and has 200 customers, particularly in the financial sector, but it is also present in the telecom sector and industry.

"This transaction will enable Capgemini to enter the Brazilian market through the front door in a market dominated by American players, the top 4 players in the market as IBM, Accenture, HP / EDS and Unisys that lock them four to 25% market, "says Dov Levy, analyst at CM-CIC Securities.

The capital increase will be financed from net cash of the group.It will be done through a capital increase CPM Braxis 129 million underwritten by Capgemini, coupled to a redemption of shares from existing shareholders of the Brazilian society of 104 million euros.

In exchange, the news is appreciated: 1.48% to 35.07 euros when the market drops 0.69% to 3598.99 points, about 10 hours.

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