French IT giant buys into Brazilian market
French computer services and consulting group Capgemini said on Thursday it has agreed to buy a 55-percent stake in Brazilian IT company CPM Braxis for 233 million euros (298 million dollars).
CPM Braxis, with around 5,500 employees, is the biggest company in its sector in Brazil, which represents some 47 percent of a Latin American IT market worth 23 billion euros, Capgemini said in a statement.
The deal, which is expected to be wrapped up by October, values CPM Braxis at 437 million euros. Capgemini will also have an option to buy the remaining 45 percent of the company within three to five years.
Paul Hermelin, chief executive of Capgemini, said the acquisition would "extend our presence in a fast-growing country" as well as help his company's clients who are investing in Brazil.
© 2010 AFP