French IT Giant Capgemini Sells Subsidiary After Row over ICE Links
The deal follows criticism from French lawmakers after Capgemini disclosed a contract to help ICE identify foreign nationals and track their movements.
- On Saturday, French IT giant Capgemini announced a definitive agreement to sell its US subsidiary to ITC Federal, described as "a US provider of digital services and solutions for federal agencies responsible for homeland security and defence."
- The divestment follows controversy over a contract with ICE, the immigration police force tasked with implementing Donald Trump's immigration policy, to provide tools identifying and tracking foreign nationals on United States soil.
- Members of parliament and Finance Minister Roland Lescure called on the company to explain its activities, as ICE faced fierce criticism across the United States following shooting deaths of two citizens in Minneapolis earlier this year.
- Capgemini previously argued that "the usual legal constraints in the United States on contracting with federal entities engaged in classified activities did not allow the Group to exercise proper control over certain aspects of this subsidiary's operations."
- The subsidiary represented 0.4% of global turnover and less than 2% of United States revenues, with the transaction expected to close in the coming weeks.
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The decision to separate from this subsidiary was taken at the beginning of February, following the controversy caused by the disclosure of a contract providing a tool for identifying and locating persons outside the ECI.
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Capgemini announced on Saturday the sale of its US subsidiary Capgemini Government Solutions, criticized for a contract with the immigration police (ICE).
Capgemini sells its subsidiary Capgemini Government Solutions after the controversy caused by a contract with the U.S. immigration police, the ICE.
Capgemini "concluded an agreement with ITC Federal, a U.S. provider of digital services and solutions for federal internal security and defence agencies, for the sale of Capgemini Government Solutions, its subsidiary that works with the U.S. federal government," the group said in a press release. The decision to separate itself from this subsidiary was made in early February, following the controversy caused by the disclosure of a contract provi…
French IT giant Capgemini sells subsidiary after row over ICE links
French IT giant Capgemini said on Saturday it was selling its US subsidiary to an American company after the unit came under pressure for its work for the US Immigration and Customs Enforcement (ICE) agency.
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