Capgemini Plans to Sell U.S. Unit Associated with ICE

• CGS accounts for only 0.4% of Capgemini's estimated 2025 revenue and less than 2% of its U.S. revenue
• French Finance Minister Roland Lescure and other lawmakers pressured Capgemini to shed light on the ICE contract following a fatal shooting of two U.S. citizens in Minnesota
• Capgemini cited inability to control certain aspects of CGS operations due to U.S. legal constraints on classified government contracts as reason for divestment

Capgemini to Divest U.S. Government Solutions Unit Amid ICE Contract Controversy

French IT services company Capgemini announced Sunday it will sell its U.S. subsidiary Capgemini Government Solutions (CGS) following political pressure over a contract with Immigration and Customs Enforcement (ICE).

Key Developments

The divestment follows inquiries from French lawmakers, including Finance Minister Roland Lescure, demanding clarity on the ICE contract amid concerns over immigration enforcement tactics. This scrutiny intensified after a fatal shooting of two U.S. citizens in Minnesota last month.

Financial Impact

CGS represents minimal exposure to Capgemini's overall business:

• 0.4% of estimated 2025 total revenue
• Less than 2% of U.S. revenue

The company stated it will "initiate immediately" the sale process but did not explicitly confirm whether the ICE contract was the sole driver.

Management Rationale

Capgemini cited operational control concerns as the primary reason for divestment. The company stated that U.S. legal constraints on federal contracts involving classified activities prevented it from exercising "appropriate control" over CGS operations to ensure alignment with group objectives.

CEO Aiman Ezzat revealed last week that Capgemini only recently learned about a contract awarded to CGS by the Department of Homeland Security's ICE in December 2025. Due to U.S. security regulations, Capgemini lacked access to classified information, contracts, or technical operations details related to CGS activities.

Market Implications

The move highlights increasing scrutiny European companies face regarding U.S. government contracts, particularly those involving sensitive immigration enforcement activities. The minimal revenue contribution suggests limited financial impact, though reputational considerations appear paramount in the decision.