Capgemini to Divest US Subsidiary Amid Scrutiny Over Immigration Enforcement Contracts

2026-02-02 companies

Paris, Monday, 2 February 2026.
Capgemini is immediately selling its US subsidiary, admitting classified restrictions prevented oversight of controversial contracts helping ICE track migrants, a unit representing just 0.4% of global revenue.

Governance Limits Force Immediate Divestiture

French IT heavyweight Capgemini (CAPP.PA) confirmed on Sunday, February 1, 2026, that it would immediately initiate the sale of its North American subsidiary, Capgemini Government Solutions (CGS) [1][7]. The decision follows an internal assessment which concluded that the stringent legal restrictions surrounding classified United States government activities made it impossible for the Paris-based group to exercise adequate supervision over the unit [7]. In a statement released following an extraordinary board meeting held over the weekend, the company acknowledged that these security constraints prevented the subsidiary from aligning with the Group’s broader corporate objectives and ethical standards [2][7].

Operational Disconnect and Political Fallout

The divestiture creates a firewall between the consultancy and a contentious contract with U.S. Immigration and Customs Enforcement (ICE), awarded to the subsidiary in December 2025 [1][8]. The agreement, valued at $4.8 million, tasked CGS with providing “skip tracing services” designed to identify and track foreign nationals for enforcement and removal operations [8]. Scrutiny of the agreement intensified sharply in January after ICE and Customs and Border Protection (CBP) agents were implicated in the deaths of two U.S. citizens, Renee Good and Alex Pretti, in Minneapolis [1]. These fatalities galvanized international criticism and placed Capgemini’s ethical commitments under the microscope [6].

Financial Materiality of the Split

Despite the high-profile nature of the controversy, the divestiture represents a minor fracture in Capgemini’s financial structure. The CGS unit contributes just 0.4% of the group’s estimated global revenue for 2025 and accounts for less than 2% of its total revenue within the United States [1][7]. The specific contract in question, while potentially scalable to $365 million based on performance, was initially capped at the $4.8 million mark [3]. By severing ties with the subsidiary, Capgemini aims to mitigate the ethical fallout while preserving the vast majority of its North American operations [1].

Sources

Divestiture Government Contracting