Capgemini Announces Sale of U.S. Subsidiary Following Controversy Over ICE Contract
Paris, 1 February 2026 – French information‑technology giant Capgemini SE disclosed that it will divest its U.S. subsidiary, Capgemini Government Solutions, which had been contracted to provide technology services for U.S. Immigration and Customs Enforcement (ICE). The decision follows a wave of criticism sparked by the agency’s involvement in the deaths of two individuals during ICE operations.
Background of the Controversy
Reports revealed that Capgemini Government Solutions supplied an identification and location‑tracking tool to ICE. The tool’s use became contentious after it was linked to incidents that culminated in fatalities. The fallout prompted scrutiny from lawmakers, advocacy groups, and the public, who questioned the company’s ethical responsibilities and the alignment of its services with U.S. immigration enforcement policies.
Capgemini’s Response
In a statement issued on Sunday, Capgemini acknowledged the “unintended consequences” that emerged from the partnership with ICE. The company emphasized its commitment to ethical business practices and outlined a plan to address stakeholder concerns. By selling the subsidiary, Capgemini seeks to distance itself from the controversial contract and to reaffirm its focus on core IT services across industries such as aerospace, defense, automotive, healthcare, and telecom.
Strategic Implications
Capgemini’s market presence remains strong, with a market capitalization of approximately €21.73 billion and a price‑to‑earnings ratio of 14.41. The company’s shares trade on both the NYSE and Euronext Paris, reflecting its dual listing strategy. While the divestiture may temporarily impact revenue streams associated with U.S. government contracts, it is expected to mitigate reputational risk and preserve investor confidence.
Outlook
The sale of Capgemini Government Solutions is part of a broader effort to align the firm’s portfolio with its stated values and to respond proactively to stakeholder expectations. Investors will monitor the transaction’s progress, as it may influence the company’s earnings trajectory and market perception in the coming quarters.
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