French technology giant Capgemini confirmed it will sell its US subsidiary after the unit faced significant domestic and international backlash over its work locating individuals for the US Immigration and Customs Enforcement (ICE). The decision follows pressure from French lawmakers concerning a contract that came under intense scrutiny amid reports of contentious ICE operations in Minnesota, according to information reported by bbc.com.
The subsidiary, Capgemini Government Solutions, was contracted since December 18 to provide 'skip tracing services for enforcement and removal operations,' which involve locating individuals whose whereabouts are unknown. Public records indicate the contract is valued at over $4.8 million and is scheduled to run until March 15, constituting one of thirteen active contracts the unit holds with ICE.
Capgemini stated in a release that it was unable to "exercise appropriate control over certain aspects of this subsidiary's operations in order to ensure alignment with the Group's objectives." The company specified that the divestiture process for this business unit would commence immediately, signaling a rapid separation from the controversial engagement.
CEO Aiman Ezzat had previously noted on LinkedIn that the nature and scope of the contract raised questions inconsistent with the firm's typical technology and business profile. This acknowledgment preceded sharp reactions from French political figures, including Finance Minister Roland Lescure, who demanded transparency regarding the firm's dealings with ICE.
Opposition members, such as MP Hadrien Clouet, called for sanctions against French private entities collaborating with ICE, underscoring domestic political opposition to the subsidiary's activities. The controversy gained momentum following reports of fatal shootings involving US citizens linked to recent intensified immigration enforcement actions under the current US administration.
Capgemini, which was founded in 1967 and is valued at approximately €22 billion, employs over 340,000 people globally. This action represents a significant step to contain reputational and regulatory risk associated with the subsidiary's specific US government engagements.
The immediate sale signals a corporate priority to maintain alignment with broader group standards, especially in volatile geopolitical contracting environments. The divestiture process will now focus on transferring or closing the operations tied to the DHS Immigration and Customs Enforcement contract.
