Capgemini acquires control of CPM Braxis
O Estado de S. Paulo 09/03/10
The French company of information technology services Capgemini acquired the control of the Brazilian CPM Braxis for R$ 517 million (US$ 295.4 million). The operation was announced yesterday after four months of negotiation. With the acquisition, the multinational stays with 55% of the shares of the company which, in turn, becomes one of the ten largest in the world in the segment of IT services. The acquisition of the control of CPM Braxis was made through two different mechanisms: the proportional purchase of one-third of the participation of the shareholders, for R$ 230 million (US$ 131.4 million); and a capital contribution of R$ 287 million (US$ 164 million), for investments and payment of debts.Bradesco, main client of CPM Braxis and main shareholder of the Brazilian company, becomes the owner of 20% of the company. In May, the bank had purchased the interest of the Deutsche Bank in CPM Holding, thus staying with 54% of the shares at that time. In the new shareholding, the holding Braxis will withhold 12% of the company; the employees, 3% and private equity funds (Gávea, Alothon and Infors), 11%. CPM has not detailed the interest of the shareholders before the arrival of the French company. According to the contract, after three years, Capgemini has the option to purchase the other 45% and the shareholders also have the possibility of selling their shares.
Meanwhile, the Brazilian executives remain ahead the operations. José Luiz Rossi continues ahead the company and former banker Jair Ribeiro, as the Chairman of the Executive Committee of the Board of Directors. "While the market grew 3% in 2009 because of the crisis, we grew 38%", said Ribeiro, referring to the R$ 1.4 billion (US$ 800 million) of new contracts signed last year. Ribeiro was one of the former shareholders of Braxis IT, company that in 2007 joined CPM and Unitech, giving rise to CPM Braxis.