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Acquisitions hit Capgemini A/NZ's bottom line

Acquisitions hit Capgemini A/NZ's bottom line

Profit takes hit while revenue increases.

Credit: Supplied

Capgemini A/NZ’s net profit has taken a hit, dwindling from A$9.7 million to $1.3 million as revenue rose from A$417.7 million in 2020 to A$566 million for the financial year ending 31 December. 

The global systems integrator made some major acquisitions in the last year, notably RXP Services (A$86.7 million), Empired (A$233 million) and Acclimation (A$61 million), spending a collective A$380.9 million.

RXP brought on board 550 professionals and broadened Capgemini’s presence in the market specifically in areas of Service Now, cloud and custom application development. It also involved digital creative agency “The Works”.

Meanwhile the acquisition of Empired and its wholly owned New Zealand subsidiary Intergen gave Capgemini a leverage into the New Zealand and US markets, bringing significant capability in areas of digital, cloud and in particular in the Microsoft space particularly with Azure and Dynamics 365. That acquisition added 1100 IT professionals. 

Empired and Intergen were officially rebranded as Capgemini from 1 July. 

The addition of Acclimation brought close to 100 SAP professionals on their payroll, significantly strengthening its capability in the SAP space.

In its financial report, Capgemini revealed it had set-up a dedicated management unit, which includes representatives of all key group functions, and implemented a series of  temporary group instructions, protocols and processes to manage the pandemic on two fronts: employee safety and business continuity.

This involved a massive roll-out of systematic home working in all countries impacted by the pandemic and the introduction of operational rotation for the engagements that must be conducted on-site. 

“At this stage, the group considers it is in a position, notably thanks to its digital capabilities, to ensure the continuity of the essential services currently demanded by its clients,” Capgemini said. “Nonetheless, future developments in the coronavirus pandemic and uncertainties as to its duration, could very significantly increase the level of risk associated with the environment in which the Group operates.”


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