Capgemini sells US unit criticised over ICE contract

IT behemoth Capgemini has finalized a deal to sell its US subsidiary, reportedly due to controversy surrounding its partnership with the controversial US immigration agency, ICE. The acquiring company, ITC Federal, specializes in digital services for federal agencies responsible for national security and defense. This transaction, subject to customary deal conditions, is anticipated to be finalized within the next few weeks.

In February, Capgemini expressed its intention to sell its US arm, Capgemini Government Solutions, following the revelation of a contract with ICE. The contract involved providing a tool for identifying foreign nationals within US borders and tracking their movements. Capgemini had argued that US laws prohibiting the sale of services to federal entities involved in classified activities prevented them from exerting sufficient oversight over the subsidiary's operations.

In response to mounting criticism, including from parliament and Economy and Finance Minister Roland Lescure, Capgemini was urged to clarify its activities in the United States. ICE, tasked with enforcing President Trump's stringent immigration policies, has come under intense scrutiny for its perceived aggressive tactics. The agency has faced significant backlash following the fatal shootings of two US citizens in Minneapolis.

With operations spanning around fifty countries, Capgemini is one of France's leading publicly traded companies, generating a turnover of 22.5 billion euros in 2025. This particular subsidiary only accounted for 0.4% of the group's total turnover that year and less than 2% of its revenues in the United States, according to Capgemini.