Capgemini’s share price rises following the sale of its US subsidiary, a supplier to the ICE

(Il Sole 24 Ore Radiocor) – Capgemini has had a positive start to the week, buoyed by the agreement to sell its subsidiary Capgemini Government Solutions (CGS), which had come under heavy criticism at the start of the year when it emerged that it had signed a contract with ICE, the controversial US federal agency responsible for enforcing immigration laws.

“Capgemini has got rid of an embarrassing subsidiary,” commented one market participant. The French digital services group’s share price is now leading the CAC 40 index and is among the best performers on the Stoxx 600. As announced on Saturday, CGS has been sold to ITC Federal, a US provider of digital services and solutions for federal agencies responsible for national security and defence, for an undisclosed sum. The transaction “is subject to the usual closing conditions for a transaction of this nature and is expected to be finalised in the coming weeks”, Capgemini stated in a press release. As the French company pointed out, CGS accounted for 0.4 per cent of the group’s turnover in 2025 and less than 2 per cent of its turnover in the United States.

The announcement of the decision to sell CGS dates back to the start of the year, following the revelation of a contract signed by the subsidiary last December with Immigration and Customs Enforcement (ICE). Under the terms of the contract, CGS provided ICE with a tool to identify and locate foreign nationals. In France, several trade union leaders and politicians had asked Capgemini for clarification regarding this contract. The French Government itself had weighed in: “I urge Capgemini to provide clarity, in the most transparent manner possible, on its activities linked to this policy and to reflect on the nature of such activities”, said Roland Lescure, Minister for the Economy, Finance, Industry, Energy and Digital Sovereignty, during the parliamentary question time on 27 January. The French Minister for the Armed Forces, Catherine Vautrin, had in turn emphasised that “the contracts of French groups deserve careful scrutiny” and “respect for human rights is a fundamental issue”. The website ‘Observatoire des Multinationales’, a watchdog organisation monitoring multinationals, has revealed that CGS has signed a $4.8 million agreement with ICE’s Detention Compliance and Removals office for ‘investigative services and background checks’. The document states that CGS will provide “person-tracing services for law enforcement and deportation operations”, with bonuses for the identification and location of foreign nationals.

Capgemini had admitted that CGS had signed a contract with ICE on 18 December, clarifying that it had not yet come into force. “The CGS division had been the subject of intense criticism at the start of the year, accused of having assisted the federal immigration police in their activities,” Invest Securities points out, emphasising that “this sale, which is of limited scope, puts this fire out once and for all”.