Capgemini trades stake in CPM Braxis for bank deal

Taking the concept of 'client partnership' to rather a different level, Capgemini is to sell off a 22% stake in its Brazilian majority-controlled subsidiary, CPM Braxis, in exchange for a 10-year ‘preferred IT supplier’ relationship with Caixa, Brazil’s 4th-largest bank. Existing investors will sell down their stakes and new shares will be issued, with the effect of reducing Capgemini’s holding from 61% to 56%. Up till now, Capgemini’s second largest shareholder has been Brazil’s 3rd-largest bank, Bradesco, but this deal now puts Caixa in that slot.

This is an ‘interesting’ way of winning business. While the deal bolsters Capgemini’s position in the Brazilian banking market, I wonder how non-shareholder clients might feel about increasingly becoming ‘second-class customers’?

I will back in Brazil next month and hope to find out more!