Cap Gemini, a major player in management consulting and IT services, and Cisco have pooled resources in a alliance to advise customers building high-speed networks.
Cisco had earlier announced that it planned to make strategic investments in consulting firms; Cap Gemini has a long-standing commitment to helping its clients challenge the Internet economy.
Cap Gemini SA will hold a 95.1 per cent stake in the subsidiary, and Cisco will hold 4.9 per cent. Cisco will invest 870 million euros in the Cap Gemini Group; an investment of 170 million euros in the new company, – a 20 per cent discount for Cisco’s minority shareholder position, and a capital investment in Cap Gemini SA of 700 million euros through a reserved capital increase. Upon closing, Cisco will receive 2.6 million shares of Cap Gemini SA.
Cap Gemini and Cisco intend to provide corporate enterprises and telecommunications service providers with global solutions in the areas of consulting, services and technologies so that they might grasp the nettle in the new area of data, voice and video integration which the Internet economy offers.
“The trend is toward a new business model where Internet solutions are provided through an Internet ecosystem of partners. This ecosystem is based on open, standard-based technology and allows hundreds of companies to participate,” said Don Listwin, executive vice president of Cisco Systems. “Together, Cap Gemini and Cisco are expanding the ecosystem to deliver solutions that will help our service provider and enterprise customers compete and survive in the Internet Economy.”
Heading the new outfit, which will extend throughout the US and Asia, will be Alexandre Haeffner, chairman of Cap Gemini’s Telecom & Media unit; the board will consist of five representatives of Cap Gemini and one representative from Cisco. The company will speed up support for telecom service providers, suppliers of services and Internet access sites and players in the media.