IT services provider Capgemini announced plans Tuesday to acquire French hosting provider Prosodie from Apax Partners and its senior managers, a deal that will cost $552 million in cash following extensive negotiations.
Capgemini CEO Paul Hermelin says the deal is part of the company“™s strategy to help Capgemini stand out from its competitors-larger Indian IT service providers that are driving down prices.
“We are also growing headcount very rapidly and will be 120,000 by the end of the year,” Hermelin said in a statement to the Financial Times. “But how stable is the model of just adding more people? We also want to grow our ability to offer specialist solutions such as handling customer relations or smart energy.”
Founded in 2006, Prosodie has quickly become one of the major payment and hosting services providers in France, boasting data centers in France, Spain and Belgium and bringing in $246 million in revenue in 2010. The operating income for that year stood at $37.6 million. Hermelin is hopeful that expanding the company“™s services outside the French borders will allow this revenue to double.
Prosodie will be Capgemini’s fourth acquisition this year alone, its largest since purchasing a majority stake in Brazilian IT services firm CPM Braxis last September. The first quarter of 2011 has proven to be very profitable for the company-a 14.5 percent increase in revenues to $3.4 billion was recorded.