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French tech company Capgemini to sell US unit linked to ICE

Published by Global Banking & Finance Review

Posted on February 1, 2026

2 min read

· Last updated: February 1, 2026

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French tech company Capgemini to sell US unit linked to ICE
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PARIS, Feb 1 (Reuters) - French tech company Capgemini said on Sunday it was selling its U.S. subsidiary Capgemini Government Solutions. Capgemini has been under pressure in recent days to explain a

Capgemini to Divest U.S. Unit Amid Contract Controversy with ICE

Capgemini's U.S. Subsidiary Sale

By Sybille de La Hamaide

Background of the Contract

PARIS, Feb 1 (Reuters) - French IT company Capgemini will sell its U.S. subsidiary Capgemini Government Solutions, it said on Sunday, after coming under pressure to explain a contract the latter signed with U.S immigration enforcement agency ICE.

Impact on Revenue

French lawmakers, including Finance Minister Roland Lescure, had asked the company to shed light the contract amid concern over the tactics used by ICE agents following the fatal shooting of two U.S. citizens in Minnesota last month.

Company's Response

"Capgemini considered that the usual legal constraints imposed in the United States on contracting with federal entities conducting classified activities did not allow the Group to exercise appropriate control over certain aspects of this subsidiary's operations in order to ensure alignment with the Group's objectives," it said in a statement.

CapGemini said the process of divestment would be "initiated immediately" but did not say whether the sale was due to CGS' contract with ICE.

CGS accounts for 0.4% of the CapGemini's estimated revenue in 2025 and less than 2% of its revenue in the United States, the group said.

Capgemini CEO Aiman Ezzat had said last week that the company had recently become aware of the nature of a contract awarded to CGS by the U.S. Department of Homeland Security's Immigration and Customs Enforcement in December 2025.

However, Capgemini did not have access to any classified information, classified contracts, or anything relating to the technical operations of CGS, as required by U.S. security regulations related to government contracts, he said.

He added that the company would review the content and scope of this contract and CGS' contracting procedures.

(Reporting by Sybille de La Hamaide and Betrand Boucey; Editing by Alexander Smith and Christina Fincher)

Key Takeaways

  • Capgemini is selling its US subsidiary.
  • The sale is linked to a controversial ICE contract.
  • Legal constraints on federal contracts influenced the decision.
  • Capgemini aims to align operations with group objectives.
  • The decision follows protests against US immigration policies.

Frequently Asked Questions

What is a subsidiary?
A subsidiary is a company that is completely or partially owned by another company, known as the parent company. Subsidiaries operate independently but are controlled by the parent company.
What is compliance in finance?
Compliance in finance refers to the process of ensuring that financial institutions and companies adhere to laws, regulations, and guidelines set by governing bodies to prevent fraud and maintain integrity.

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