Capgemini is acquiring RXP Services, a digital, data and cloud IT consulting firm with Microsoft, Salesforce and ServiceNow expertise. The deal is valued at roughly US$70 million.
This is M&A deal number 462 that ChannelE2E has tracked so far in 2020. See the complete M&A deal list here.
RXP Services revenue was about US$93 million for the company's fiscal year ended June 2020. The business has 550 employees across Australia. The firm is headquartered in Melbourne, with locations in Sydney, Canberra and Hobart. Moreover, RXP Services owns a branding, design and customer experience agency called “The Works.”
Meanwhile, Capgemini has offices in Sydney, Melbourne, Canberra, Brisbane, Perth, Auckland and Wellington. The company's local services include strategy and transformation, application and technology, and operations and engineering. As part of its Australia and New Zealand push, Capgemini acquired Australian MuleSoft specialist WhiteSky Labs.
Capgemini Acquires RXP Services: Executive Perspectives
In a prepared statement about the RXP Service acquisitions, Luc-Francois Salvador, executive chairman of Capgemini in Asia Pacific and the Middle East, said:
“The acquisition of RXP Services will make Capgemini a market leader in Australia in digital, data and cloud, enhancing our ability to provide our clients with value, scale and world-class expertise. This transaction will be a step change for Capgemini in Australia and illustrates Capgemini’s growth ambition in Asia Pacific. Both companies share similar values and vision of the role of technology and humanity in successfully transforming businesses and society. Our strengths will enable us to use insights, design and technology to create inclusive and sustainable futures for our clients.”
Added Ross Fielding, CEO of RXP Services:
“At RXP Services we believe its critical that digital consultancies focus on the people aspect of technology-enabled solutions, hence Capgemini’s conviction that the value of technology comes from and through people is very complementary to our beliefs. In addition to the natural fit, joining Capgemini would offer a larger scale and capability for our RXP Services teams to deliver end to end solutions that our clients need and want, with the option to expand them globally. The RXP Services board and I unanimously recommend that RXP Services shareholders vote in favor of the Scheme in the absence of a superior proposal and subject to the independent expert concluding (and continuing to conclude) that the Scheme is in the best interests of RXP Services shareholders.”
The deal is expected to close in early 2021 pending RXP Services shareholder approval, court approval, regulatory approvals and other customary conditions.
