Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Equity Bottom-Up

<ul>
<li>Capgemini’s acquisition of WNS is aiming to transform its BPO capabilities through AI. The acquisition, at a 35–40% premium over Genpact, boosts Capgemini’s BPO revenue share to 8%. </li>
<li>The strategic rationale hinges on leveraging AI to move the BPO model to outcome-based, intelligent operations. While WNS brings industry-specific platforms and early digitalisation, AI adoption is still nascent.   </li>
<li>Capgemini targets 7% EPS accretion by 2027 via synergies, though the high acquisition price leaves limited margin for error. Short-term share price impact is likely muted until margin gains emerge.  </li>
</ul>


Capgemini’s acquisition of WNS is aiming to transform its BPO capabilities through AI. The acquisition, at a 35–40% premium over Genpact, boosts Capgemini’s BPO revenue share to 8%. 
The strategic rationale hinges on leveraging AI to move the BPO model to outcome-based, intelligent operations. While WNS brings industry-specific platforms and early digitalisation, AI adoption is still nascent.   
Capgemini targets 7% EPS accretion by 2027 via synergies, though the high acquisition price leaves limited margin for error. Short-term share price impact is likely muted until margin gains emerge.  


Capgemini (CAP FP): WNS - A Bet on the Agentic AI Revolution

<ul>
<li>Capgemini is acquiring Cloud4C, a managed cloud services provider with 1,600 employees, to strengthen its cloud and SAP infrastructure capabilities. We estimate the deal is considered a tier-2 acquisition.   </li>
<li>Combined with its acquisition of Syniti, Cloud4C allows Capgemini to offer end-to-end SAP services—including infrastructure, cybersecurity, FinOps, and AI—particularly supporting clients migrating to S/4HANA in hybrid or sovereign cloud environments.   </li>
<li>Despite strategic relevance, the acquisition is not expected to act as a stock catalyst, especially amid market concerns following the larger WNS acquisition and weak IT services demand.</li>
</ul>


Capgemini is acquiring Cloud4C, a managed cloud services provider with 1,600 employees, to strengthen its cloud and SAP infrastructure capabilities. We estimate the deal is considered a tier-2 acquisition.   
Combined with its acquisition of Syniti, Cloud4C allows Capgemini to offer end-to-end SAP services—including infrastructure, cybersecurity, FinOps, and AI—particularly supporting clients migrating to S/4HANA in hybrid or sovereign cloud environments.   
Despite strategic relevance, the acquisition is not expected to act as a stock catalyst, especially amid market concerns following the larger WNS acquisition and weak IT services demand.


Capgemini (CAP FP): Building End-To-End SAP Services

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Capgemini has presented a mixed set of results for the first half of 2025.</li><li>The company has demonstrated resilience in a volatile economic environment, reporting revenue growth slightly above expectations, with H1 revenue reaching EUR 1.107 billion, a 0.2% increase year-on-year.</li><li>Bookings amounted to EUR 11.993 billion, representing a 2.1% year-on-year growth.</li></ul>

Capgemini has presented a mixed set of results for the first half of 2025.The company has demonstrated resilience in a volatile economic environment, reporting revenue growth slightly above expectations, with H1 revenue reaching EUR 1.107 billion, a 0.2% increase year-on-year.Bookings amounted to EUR 11.993 billion, representing a 2.1% year-on-year growth.

Capgemini’s Bold Growth Formula: Can Strategic Acquisitions & APAC Momentum Outpace the Competition?

<ul>
<li>Q1 2025 performance showed stabilisation, with revenues beating expectations and bookings improving for a second consecutive quarter, although visibility for H2 remains low and growth may weaken again in Q2.   </li>
<li>Capgemini lags global peers in growth, mainly due to its revenue mix and high exposure to struggling sectors like European automotive, despite stable momentum and resilience in some industries.   </li>
<li>Strategic growth drivers include GenAI, defence, cybersecurity, and sovereignty, though GenAI has yet to materially impact revenues; and short-term gains may favour SaaS vendors over IT services firms.</li>
</ul>


Q1 2025 performance showed stabilisation, with revenues beating expectations and bookings improving for a second consecutive quarter, although visibility for H2 remains low and growth may weaken again in Q2.   
Capgemini lags global peers in growth, mainly due to its revenue mix and high exposure to struggling sectors like European automotive, despite stable momentum and resilience in some industries.   
Strategic growth drivers include GenAI, defence, cybersecurity, and sovereignty, though GenAI has yet to materially impact revenues; and short-term gains may favour SaaS vendors over IT services firms.


<ul><li>Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges.</li><li>The company's revenues saw a decline of 2% at constant currency to EUR 22,096 million, evidencing the broader economic pressures and restrained client spending, especially in sectors like Manufacturing and regions such as France.</li><li>This drop was somewhat mitigated by resilience in segments such as Financial Services and Public Sector, and geographic improvement in North America, the U.K., Asia Pacific, and Latin America.</li></ul>

Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges.The company's revenues saw a decline of 2% at constant currency to EUR 22,096 million, evidencing the broader economic pressures and restrained client spending, especially in sectors like Manufacturing and regions such as France.This drop was somewhat mitigated by resilience in segments such as Financial Services and Public Sector, and geographic improvement in North America, the U.K., Asia Pacific, and Latin America.

Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!

France

Capgemini offers information technology services. The Company provides mobile software solutions, business process management, outsourcing, cloud computing, finance, consulting, supply chain management, engineering, and other services. Capgemini serves aerospace, defense, automotive, health care, life science, telecom, media, and entertainment industries worldwide.

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Capgemini (CAP FP)

Capgemini (CAP FP): WNS - A Bet on the Agentic AI Revolution

Capgemini's acquisition of WNS aims to boost BPO capabilities with AI, targeting outcome-based operations and 7% EPS accretion by 2027. Limited...

Gregory Ramirez

Capgemini (CAP FP): Building End-To-End SAP Services

Capgemini strengthens cloud and SAP capabilities with acquisition of Cloud4C, enhancing end-to-end SAP services. Acquisition not expected to...

Gregory Ramirez

Capgemini’s Bold Growth Formula: Can Strategic Acquisitions & APAC Momentum Outpace the Competition?

Capgemini has presented a mixed set of results for the first half of 2025. The company has demonstrated resilience in a volatile economic...

Baptista Research

Capgemini (CAP FP): False Start?

Q1 2025 shows stabilisation for Capgemini, but growth lags global peers due to revenue mix and sector exposure. Strategic drivers include GenAI,...

Gregory Ramirez

Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!

Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges. The company's revenues saw a...

Baptista Research

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52-week Range

Market Cap (USDm)

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Dividend (Yield)

Capgemini (CAP FP): WNS - A Bet on the Agentic AI Revolution

​Capgemini's acquisition of WNS aims to boost BPO capabilities with AI, targeting outcome-based operations and 7% EPS accretion by 2027. Limited...

Gregory Ramirez

Capgemini (CAP FP): Building End-To-End SAP Services

​Capgemini strengthens cloud and SAP capabilities with acquisition of Cloud4C, enhancing end-to-end SAP services. Acquisition not expected to...

Gregory Ramirez

Capgemini’s Bold Growth Formula: Can Strategic Acquisitions & APAC Momentum Outpace the Competition?

Capgemini has presented a mixed set of results for the first half of 2025. The company has demonstrated resilience in a volatile economic...

Baptista Research

Capgemini (CAP FP): False Start?

​Q1 2025 shows stabilisation for Capgemini, but growth lags global peers due to revenue mix and sector exposure. Strategic drivers include GenAI,...

Gregory Ramirez

Capgemini: Initiation of Coverage- Strategic Acquisitions & 4 Pivotal Growth Levers!

Capgemini's full-year 2024 results reflect a mixed performance against a backdrop of continued market challenges. The company's revenues saw a...

Baptista Research

Capgemini's acquisition of WNS aims to boost BPO capabilities with AI, targeting outcome-based operations and 7% EPS accretion by 2027. Limited...

Capgemini strengthens cloud and SAP capabilities with acquisition of Cloud4C, enhancing end-to-end SAP services. Acquisition not expected to...

Q1 2025 shows stabilisation for Capgemini, but growth lags global peers due to revenue mix and sector exposure. Strategic drivers include GenAI,...