Capgemini to acquire Czech IT consulting firm to reinforce its presence in Eastern Europe

by Editor 11/26/2008 3:05:00 PM
Capgemini, one of the world’s leaders in consulting, IT services and outsourcing, has entered into an agreement for the acquisition of EMPIRE s.r.o., a privately-held, Czechbased IT services and consulting company, and its subsidiary SOPHIA SOLUTIONS s.r.o., a local expert in Business Intelligence and Data Warehouse (BI/DWH).

Both companies represent on a consolidated basis around €10M total revenues. Through this acquisition and in line with its strategy, Capgemini is developing its presence in mature Eastern European countries. Once Empire and Sophia Solutions are integrated, the consulting and IT services capacity of Capgemini will be significantly enhanced in the Czech Republic with additional 165 highly skilled employees, giving the total of close to 230 of the combined unit in the local market. Under the terms of the share purchase agreement, Capgemini will acquire 100% shares of EMPIRE and 70% of SOPHIA SOLUTIONS, paid in cash on own resources. Capgemini will be able to acquire the remaining 30% of the shares in SOPHIA SOLUTIONS via call options over the coming years.

The transaction is subject to customary closing conditions and it is expected that it will close by the end of December 2008.

EMPIRE pursues a wide spectrum of activities in the area of application development, system integration, Internet portal creation and security. EMPIRE is one of the most sought-after companies in the ICT field in the Czech Republic. The company client base comprises the leading actors of the financial services and telecom industries in the Czech Republic as well as major Czech public sector institutions. SOPHIA SOLUTIONS offers complex IS solutions for management and decision making support as well as to supply products and services in the field of BI/DWH. Among its main clients, SOPHIA SOLUTIONS counts some major international names in the retail sector, automotive and airline sector as well as large state organizations.

“This acquisition represents a significant step forward for Capgemini in our strategy to accelerate growth in our core Eastern European countries,” said Peter Laggner, CEO Capgemini Eastern Europe. “These companies enhance our Technology Services capabilities in our consulting oriented practice in the Czech Republic. We are looking forward to delivering on the promise of this acquisition and with strongly motivated management teams we aspire for a smooth and successful integration of the company into our country unit, region and Group.”

Michal Kavale, majority shareholder and CEO of EMPIRE, will join the top management of Capgemini Czech Republic. Mr. Kavale stated: “The combination of EMPIRE, a strong local IT development and solution provider, and Capgemini, one of the world’s leaders in consulting and IT services, brings a new value to our clients. With this transaction we are becoming an international partner with the strong technology and consulting capabilities, which will give a new impulse to the Czech IT market.”

The deal creates a major consulting and IT services firm in the Czech Republic with strong domain knowledge across market verticals, including financial services, telecommunications, retail, manufacturing and the public sector.

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