Paris, February 5, 2026, 22:03 CET
Capgemini shares slipped to 118.05 euros from 119.10 in the previous close, following the Paris-listed IT service provider’s decision to sell Capgemini Government Solutions. This U.S. subsidiary is tied to U.S. Immigration and Customs Enforcement (ICE). The sale was announced on Feb. 1, after French officials and lawmakers demanded clarification on the unit’s ties to ICE.
The decision comes amid growing pressure on firms across the Atlantic to clarify their roles in immigration enforcement. France’s government specifically pushed Capgemini for greater openness about its subsidiary’s connections to ICE, following fatal shootings of two U.S. citizens in Minneapolis in recent weeks.
The Financial Times reported that the unit offered “skip tracing” services—a data-intensive method for locating individuals by combining records like phone data and digital footprints. According to the newspaper, CGS’s ICE-related contracts covered over $14.7 million in skip-tracing and data support services. Financial Times
Capgemini cited standard U.S. restrictions on classified federal projects as the reason it couldn’t maintain “appropriate control” over parts of its subsidiary’s operations, and said it will start the divestiture process right away. The company valued CGS at roughly 0.4% of its projected 2025 global revenue and under 2% of its U.S. revenue. Capgemini
Washington Technology reported that CGS operates under a Special Security Agreement, a setup that allows a foreign-owned contractor to handle classified tasks while keeping control firmly with cleared U.S. directors. Capgemini CEO Aiman Ezzat noted that CGS systems are “firewalled” from the parent company. According to USASpending.gov data cited by the outlet, ICE contracts made up about 65% of the unit’s unclassified prime-contract revenue over the last year. Washington Technology
“You don’t want that kind of spotlight right now,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. He doesn’t own Capgemini stock. Michael Field, Morningstar’s chief European equity strategist, said he was “surprised and impressed” by how fast Capgemini reacted to the backlash. Reuters reported that many companies also hold ICE contracts, including Palantir Technologies and prison operators Geo Group and CoreCivic. Reuters
BBC News highlighted the contract due to the unit being slated to receive over $4.8 million (3.5 million pounds) for tracking individuals on behalf of ICE.
Business Insider reported that since December, Capgemini Government Solutions has held a contract to supply software designed to detect and track foreign nationals. This has sparked concerns from French lawmakers and the company’s trade union. Capgemini explained that legal restrictions have barred it from aligning this unit’s activities with the broader group’s goals.
The sale might not settle the dispute. A French trade union started an online petition urging Capgemini to stop working with U.S. immigration agencies and pushing for a wider review of the company’s federal contracts.
