PARIS and SAO PAULO, BRAZIL--(Marketwire - Jun 6, 2012) - Caixa Participações (CaixaPar), Caixa Economica Federal's wholly owned investment arm, today signed agreements with CPM Braxis Capgemini, Capgemini's 61% owned Brazilian IT services company, to buy a 22% stake in that company through the simultaneous purchase of shares from existing shareholders and the subscription to a capital increase. CPM Braxis Capgemini would thus become a preferred IT supplier to Caixa Economica Federal (Caixa) for the next 10 years. The consummation of the transaction remains subject to the approval by the Brazilian antitrust authorities and the Central Bank of Brasil and is expected to close in the coming months.
Caixa is the 5th largest bank in Brazil by total assets and the largest public bank in Latin America. Founded in 1861 and based in Brasilia, Caixa, a government financial institution, provides banking products and services in Brazil. Caixa is also a key partner of the Government in social programs. It plans to leverage CPM Braxis Capgemini's IT services to modernize its IT systems in order to provide more state of the art services to its customers.
Through this transaction CPM Braxis Capgemini continues to demonstrate its leadership position in the Brazilian IT services market. In addition, through its new preferred supplier relationship with Caixa and existing client relationship with Banco Bradesco S.A., CPM Braxis Capgemini will become the leading IT services provider to the financial sector in Brazil.
Under the terms of the transaction, CaixaPar, Caixa's wholly owned investment arm, will acquire a 22% stake in CPM Braxis Capgemini through the purchase of shares from existing shareholders and the subscription to a capital increase. CaixaPar will thus become the second largest shareholder in CPM Braxis Capgemini, with significant governance rights. Total investment from CaixaPar will amount to BRL 321 million (EUR 128.4 million) including BRL 121 million (EUR 48.4 million) of new shares through a capital increase. The equity value of CPM Braxis post -transaction will amount to BRL 1.46 billion (EUR 584 million). Capgemini will maintain its controlling shareholder position in CPM Braxis Capgemini with a 55.8% stake after the transaction, and will continue to consolidate fully the financials of CPM Braxis Capgemini.
For Paul Hermelin, Capgemini's Chairman and CEO: "This agreement is a key milestone for our expansion plans in Brazil and Latin America. We are delighted to become Caixa's IT preferred partner, and look forward to accompany this major Latin America financial company in the modernization of their IT systems, building on our leading position in the financial sector."
For Jose Luiz Rossi, CPM Braxis Capgemini's CEO: "The entrance of Caixa Econômica Federal in our group of shareholders will bring unprecedented conditions for accelerated and sustainable growth in the short and long terms. This strategic partnership will provide, in addition to volume and critical mass, development opportunities in the Brazilian IT services market".
With around 120,000 people in 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business Experience™, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.
Rightshore® is a trademark belonging to Capgemini
About CPM Braxis Capgemini
CPM Braxis Capgemini, a company of the Capgemini Group, is a leading provider of information technology solutions. It offers four service lines to companies operating in Brazil and worldwide: Applications Management Services, Enterprise Applications Services, Infrastructure Services, and Infrastructure Products. Having successfully operated in Brazil for over 30 years, the company employs over 6.5 thousand people and serves over 200 customers throughout the country. It has 8 Development Centers, Testing Centers and its own data center, in addition to a command center for remote management of infrastructure and shared maintenance and support service hubs for SAP solutions. It also has the CMMI Dev. 1.2 Level 5 certification
Please visit: www.cpmbraxis.com
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