Capgemini acquires German services firm

Outsourcing provider stumps up cash to take over CS Consulting's business

Outsourcing provider Capgemini today announced it has bought German IT services firm CS Consulting.

Capgemini says the deal will more than double its market share in IT services for local banking clients.

It said the move was made in anticipation of the upcoming transformation of banks, which it claimed will notably trigger high IT demands.

Olivier Sevillia, member of Capgemini Group's executive committee, said: "With this step, we are giving a clear signal for the further growth of our business in Germany."

"We will combine our strengths to serve German banks' expansion and transformation," said Berndt Blumenthal, CEO of CS Consulting.

The contract is still under conditional approval by the relevant anti-trust authorities.

Capgemini said the acquisition from holding firm LRPC will be funded by cash, given its strong net cash position.

CS Consulting specialises in the migration of core banking systems as well as the implementation of business intelligence systems. It generated revenue of €47.4m (£40.3m) in 2009.