Stock Markets February 2, 2026

Capgemini to Divest U.S. Government Unit Amid Scrutiny Over ICE Contract

French IT group says legal constraints limited control over U.S. subsidiary; immediate sale process to begin

By Ajmal Hussain
Capgemini to Divest U.S. Government Unit Amid Scrutiny Over ICE Contract

Capgemini announced it will sell its U.S. subsidiary, Capgemini Government Solutions (CGS), and begin a divestment process immediately after facing questions from French lawmakers over a contract CGS signed with U.S. Immigration and Customs Enforcement (ICE). The group said U.S. legal constraints restricted its ability to govern certain CGS activities, and reiterated that it had no access to classified material tied to CGS’s government work.

Key Points

  • Capgemini will sell its U.S. unit Capgemini Government Solutions and has initiated the divestment process immediately.
  • French lawmakers, including Finance Minister Roland Lescure, requested clarification after CGS signed a contract with U.S. Immigration and Customs Enforcement amid public concern following a recent fatal shooting in Minnesota.
  • Capgemini says U.S. legal constraints on federal contracting limited the group's ability to control certain CGS operations; CGS represents 0.4% of the group's estimated 2025 revenue and under 2% of its U.S. revenue.

French IT services group Capgemini said it will sell its U.S. unit Capgemini Government Solutions (CGS) and has initiated the divestment process, after being pressed to clarify a contract that CGS signed with the U.S. immigration enforcement agency ICE.

French elected officials, including Finance Minister Roland Lescure, had sought explanations from the company about the contract following concerns linked to the tactics used by ICE agents after a fatal shooting of two U.S. citizens in Minnesota last month. Those inquiries prompted Capgemini to examine whether it could exercise adequate control over aspects of the subsidiary’s operations while complying with U.S. legal constraints on federal contracting that can involve classified activities.

In a statement, Capgemini said it considered that the usual legal constraints imposed in the United States on contracting with federal entities conducting classified activities did not allow the Group to exercise appropriate control over certain aspects of this subsidiary’s operations in order to ensure alignment with the Group’s objectives.

The company said the process of divestment would be "initiated immediately," but it did not explicitly state that the sale was being driven solely by CGS’s contract with ICE.

Capgemini provided figures underscoring the relative size of CGS within the group: CGS accounts for 0.4% of Capgemini’s estimated revenue in 2025 and represents less than 2% of the company’s revenue in the United States.

Capgemini’s chief executive had said the company had recently become aware of the nature of a contract awarded to CGS by the Department of Homeland Security’s Immigration and Customs Enforcement in December 2025. The CEO noted that Capgemini itself did not have access to any classified information, classified contracts, or details relating to the technical operations of CGS, as required by U.S. security regulations tied to government contracts.

The company also said it would review the content and scope of the ICE contract and CGS’s contracting procedures to understand the arrangements and to determine any necessary steps going forward.


Context and next steps

The divestment announcement signals a rapid corporate move to alter ownership of a small but sensitive part of Capgemini’s business. The company has committed to reviewing contractual arrangements and internal procedures related to CGS as it proceeds with the sale process.

Risks

  • Uncertainty over whether the divestment is directly tied to the ICE contract - this could affect stakeholders in government contracting and IT services.
  • Potential reputational and regulatory scrutiny for Capgemini and CGS as the company reviews the content and scope of the ICE contract and CGS’s contracting procedures.
  • Operational and revenue disruption for CGS and related U.S. government service delivery during a sale process; impacts are likely limited to the government contracting and IT services sectors given CGS’s small share of overall revenue.

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