Capgemini to sell Government Solutions unit after ICE contract controversy

Capgemini disclosed that it will sell its Capgemini Government Solutions subsidiary to ITC Federal, an American provider of digital solutions for federal security and defence agencies. The move comes after the subsidiary faced backlash earlier this year when it was revealed to have delivered an identification and location system to Immigration and Customs Enforcement, the US immigration police. Capgemini argued that legal restrictions on US federal contracts involving classified work prevented it from exercising adequate control over the unit.

The sale was first announced in February and is now proceeding under customary conditions, with completion anticipated shortly. The company highlighted that the unit represented a small share of its overall revenue. This divestiture occurs amid a broader restructuring plan announced by Capgemini earlier in the year.