Capgemini to buy controlling stake in Brazil's CPM Braxis for €233 million

Capgemini, one of the world's largest consulting, technology and outsourcing services company is acquiring a controlling 55-per cent stake in Brazilian IT services company CPM Braxis for €233 million ($298 million) to expand into the Latin America market.

Sao Paulo-based CPM Braxis is Brazil's biggest IT services company and one of the biggest in Latin America.

With over 5,500 employees, CPM Braxis boasts a diversified business portfolio focused on Application Outsourcing and Enterprise Application Services, and Infrastructure Integration and Infrastructure Services, the majority of which is delivered through multi-year contracts.

CPM Braxis serves over 200 clients, and is especially strong in the financial sector. Its biggest client, major Brazilian bank Bradesco, was also its biggest shareholder prior to the transaction. CPM Braxis is also present in the telecoms sector, as well as in manufacturing and utilities.

The company saw growth of 12 per cent in 2009 and should grow by nearly 20 per cent in 2010, said Paris-based Capgemini.

The acquisition will allow Capgemini to enter the fast growing IT market in Brazil. Brazil represents 47 per cent of the Latin American IT services market, valued at $23 billion.