Technology outsourcing company Capgemini announced its deal to acquire the North American operations of Ciber for $50 million.
Capgemini will acquire the majority of the North American business of Ciber, covering client-focused assets, employees and operations, with revenue of c. $275 million. The transaction excludes certain liabilities of Ciber as well as its international operations.
The acquisition of the North American business of Ciber will strengthen Capgemini’s presence in the region with key Fortune 1000 clients in sectors such as Automotive, Telecom and Media. The deal will increase Capgemini’s workforce by an estimated 2,000 consultants in the US and 1,000 in India.
The impact from current Ciber operational losses on the 2017 Group combined operating margin is expected to be limited to less than 20 basis points. In this context, Capgemini continues to target a Normalized EPS of close to €6.10 per share in 2017.
The acquired assets of Ciber will be combined with the existing US operations of Capgemini’s Technology and Engineering Services (Sogeti). The rationalization of the overhead costs will result into profitability of Ciber’s operations and leveraging a strong client base.