The transaction distances the French technology group from political scrutiny without necessarily ending the disputed surveillance work.
PARIS, FRANCE
Capgemini has signed a definitive agreement to sell Capgemini Government Solutions, its American subsidiary serving US federal agencies, to ITC Federal. The buyer provides digital services to law-enforcement, homeland-security and defense organizations. Financial terms were not disclosed, and the transaction is expected to close within weeks, subject to customary conditions.
The French group began the divestment process in February after details emerged about the subsidiary’s work for US Immigration and Customs Enforcement. Capgemini Government Solutions had been contracted to provide technology capable of identifying foreign nationals in the United States and tracking their locations as part of immigration-enforcement operations.
The disclosure generated criticism from French lawmakers and employee representatives, while Economy and Finance Minister Roland Lescure demanded greater transparency. Scrutiny intensified following controversial ICE operations under President Donald Trump’s stricter immigration policy and the fatal shootings of two US citizens by federal immigration officers in Minneapolis.
Capgemini argued that American security rules governing contractors working with federal agencies on classified activities prevented the parent company from exercising adequate oversight over parts of the subsidiary’s operations. That explanation exposed a wider governance problem for multinational technology companies: legal separation may protect sensitive government information, but it can also leave corporate leadership unable to determine whether contracts remain compatible with publicly declared ethical principles.
The unit represented only 0.4% of Capgemini’s global revenue in 2025 and less than 2% of its US business. Its limited financial contribution made a sale less damaging than the reputational consequences of continued ownership. Capgemini, which generated €22.5 billion in revenue in 2025 and operates in approximately 50 countries, can now separate its global brand from the politically sensitive contract.
Yet the sale transfers ownership rather than eliminating the underlying capability. ITC Federal already serves American security and defense agencies, meaning the technology and expertise may remain available to the US government. The episode therefore illustrates how divestment can resolve a corporation’s exposure while leaving unresolved the deeper questions surrounding private surveillance, immigration enforcement and accountability across borders.
Responsibility cannot end where ownership changes hands.