The process of informing and consulting with employee representatives has been completed, and the authorization of the French competition authorities obtained. The transaction, based on an enterprise value of €382 million, is being financed in cash from the Group’s net cash balance and will enable Capgemini to enter the high-value-added front office transaction solutions market. Prosodie will form part of Capgemini’s New Business Model (NBM) service line, the aim of which is to develop services based on proprietary solutions invoiced on a pay-as-you-go basis.
Prosodie proposes to its clients all-in-one, innovative solutions covering all aspects of the multi-channel client relationship and prepayment – both areas in which the company is the leader in France – as well as the payment and hosting of services that are highly secure and available 24/7. Prosodie counts 861 team members and is underpinned by a solid R&D capacity. The company is present in France, Spain, and, more recently, in Belgium and Italy. In 2010, it reported consolidated revenues of €172.3 million and a 15.9% operating margin (EBIT)1. More recently, Prosodie strengthened its position on the Internet applications hosting market with the announcement, at the end of May, of the acquisition of 2 companies: Internet-Fr in France and LevelIP in Italy. It also entered into negotiations in July with the shareholders of French company Backelite, the leader in the area of Internet applications for mobile phones and tablets, to acquire 100% of this company’s capital.
For Paul Hermelin, Capgemini Vice-Chairman and CEO: “This acquisition represents a new step in our solutions development strategy. It enables us to complete the Group’s portfolio while increasing our added value. In addition, in integrating the New Business Models service line set up for this very reason, Prosodie will be a perfect fit with Capgemini.”
The acquisition is accretive to Capgemini’s operating margin. It will also be accretive to net earnings per share – excluding operating synergies – of at least 3% in 2011 and around 4% in 2012.
With around 115,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2010 global revenues of EUR 8.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.
Learn more about us at www.capgemini.com.
Rightshore® is a trademark belonging to Capgemini.
Forward Looking Statements
This press release contains forward‐looking statements with respect to Capgemini’s financial condition, results of operations, business, strategy and plans. Although Capgemini believes that such forward‐looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Actual results may differ materially from the forward looking statements as a result of a number of risks and uncertainties, many of which are outside our control, including but not limited to the risks regarding antitrust and regulatory approval as well as the risks described in the documents Capgemini has filed with the Autorité des Marchés Financiers (French securities regulator) and which are also available in English and French on our website (www.capgemini.com). Investors and security holders may obtain a free copy of the documents filed by Capgemini with the Autorité des Marchés Financiers at www.amf‐france.org, or directly from Capgemini.
The present forward‐looking statements are made as of the date of this presentation and Capgemini did not disclaim any intention or obligation to provide, update or revise any forward‐looking statement, whether as a result of new information, future events or otherwise.
1 Adjusted to exclude free share charges for the year (published operating margin amounts to 15.3%).