Capgemini raises 2015 revenue outlook on Igate acquisition

MUMBAI: Capgemini said its revenue in the first half jumped 9.9% and the French IT firm raised its full-year revenue and margin guidance to account for its acquisition of Igate, and said a detailed blueprint for the integration would be available by the end of September.

Capgemini said first-half revenue grew by nearly a tenth to 5.6 billion euros. Organically, excluding the impact of currency fluctuations and the consolidation of Euriware, the company reported revenue growth of 1.4%. Capgemini’s acquisition of Igate closed on July 1, and is not included in the results. Capgemini also forecast 2015 revenue growth of 12%, at current group structure and exchange rates, and an operating margin rate of 10.3%.

“The combined evolution of our geographic mix and our portfolio of offerings towards high value-added segments enables us to further improve our profitability and gain market share. The IGATE integration process is now underway which together with the accelerated development of our Digital business, will be the Group’s priority for the coming period,” Paul Hermelin, chairman and chief executive officer of Capgemini Group, said in a statement.

Capgemini now has 178,500 employees, including 96,000 in its global delivery centers, most of which are in India.

“Experienced good growth in North America and we see good growth in emerging markets. Europe is less active, so that’s pretty good,” Hermelin said in a video available on the company’s investor relations side. Hermelin also addressed the company’s integration with Igate.

“I just chaired a meeting with 80 people from both companies and they are very excited. We have to work as one company by January, so there will be a detailed blueprint made by end of September,” he added.