French Tech Firm Capgemini Set to Sell US Unit Tied to Immigration Agency
In a move aimed at alleviating pressure, French IT giant Capgemini announced on Sunday that it plans to sell its US subsidiary Capgemini Government Solutions (CGS), which has been linked to a contract with the US Department of Homeland Security's Immigration and Customs Enforcement (ICE).
The decision comes amid growing concerns over ICE's tactics following the fatal shooting of two US citizens in Minnesota last month. French lawmakers, including Finance Minister Roland Lescure, had pressed Capgemini to shed light on its contract with ICE, sparking controversy.
According to Capgemini, it has considered divesting its US unit due to "legal constraints" imposed by the US government on contracting with federal entities involved in classified activities. The company stated that it could not exercise control over certain aspects of CGS's operations to ensure alignment with its objectives.
Capgemini CEO Aiman Ezzat confirmed that his company only recently became aware of the nature of a contract with ICE, but emphasized that it had no access to classified information or technical details regarding the contract. The company has assured that it will review the content and scope of this contract as well as CGS' contracting procedures.
While the reasons for divesting its US unit are not explicitly stated, Capgemini's move is seen as an effort to mitigate concerns and criticism from French lawmakers. The sale is expected to be completed in a timely manner, although no specific timeline was provided by the company.
In a move aimed at alleviating pressure, French IT giant Capgemini announced on Sunday that it plans to sell its US subsidiary Capgemini Government Solutions (CGS), which has been linked to a contract with the US Department of Homeland Security's Immigration and Customs Enforcement (ICE).
The decision comes amid growing concerns over ICE's tactics following the fatal shooting of two US citizens in Minnesota last month. French lawmakers, including Finance Minister Roland Lescure, had pressed Capgemini to shed light on its contract with ICE, sparking controversy.
According to Capgemini, it has considered divesting its US unit due to "legal constraints" imposed by the US government on contracting with federal entities involved in classified activities. The company stated that it could not exercise control over certain aspects of CGS's operations to ensure alignment with its objectives.
Capgemini CEO Aiman Ezzat confirmed that his company only recently became aware of the nature of a contract with ICE, but emphasized that it had no access to classified information or technical details regarding the contract. The company has assured that it will review the content and scope of this contract as well as CGS' contracting procedures.
While the reasons for divesting its US unit are not explicitly stated, Capgemini's move is seen as an effort to mitigate concerns and criticism from French lawmakers. The sale is expected to be completed in a timely manner, although no specific timeline was provided by the company.