Paris-based consulting and IT solution provider giant Capgemini Group Monday said it plans to acquire LiquidHub, a provider of digital transformation services, in a move the company said will expand both its own digital transformation capabilities and its reach into the U.S. market.
Capgemini, which has U.S. headquarters in New York, is No. 6 on the CRN 2017 Solution Provider 500, with 2016 revenue of over $14 billion.
Capgemini declined to provide specific terms of the acquisition. However, the company said that Wayne, Pa.-based LiquidHub in 2017 had estimated revenue of about 200 million euros, which is approximately $248 million according to Monday's exchange rate. Capgemini said it plans to acquire LiquidHub for around two times its revenue, which would be just under $500 million.
The transition is expected to close in the next couple of months, Capgemini said.
LiquidHub is heavily involved in such verticals as health care, life sciences, insurance, commercial, financial services and retail. The company provides a wide range of services around analytics, digital architecture, personalized content, creative, data management, development, media management, market research and business strategy.
A Capgemini spokesperson told CRN the company was unable to provide additional information at this time because of the company's quiet period.
However, in a prepared statement, Paul Hermelin, Capgemini chairman and CEO, said that LiquidHub’s passion to help customers take advantage of its digital expertise and complex technology execution to engage with their own customers fit well with Capgemini's end-to-end digital services business.
"The team’s customer-centric mind-set was evident, and its impressive employee retention record is a testament to the strength of LiquidHub’s purpose, vision and values that are complementary to those of Capgemini. I’m delighted to welcome them to the group," Hermelin said.
Jonathan Brassington, LiquidHub CEO and co-founder, said in a statement that having all the necessary parts and pieces to create a solution is key to delivering a unified and satisfying experience to customers.
"It’s not physical or digital; it’s the blended experience. The full spectrum of Capgemini’s digital transformation solutions and services coupled with its global reach will allow us to augment and expand our offerings for our current and future clients around the world: a very exciting prospect for the entire LiquidHub team," Brassington said.