Technology and outsourcing services provider Capgemini’s Australian arm has finalized a deal to purchase RXP Services, an Aussie digital services consultancy. The MNC has agreed to pay an amount for about $95.5 million to seal the deal. Capgemini Australia and RXP Services have entered a scheme implementation deed. The deed by the global leading company proposes the acquisition of 100% of RXP shares through a Scheme of Arrangement.
Capgemini Australia acquires RXP services
The deal is subject to the approval of shareholders and court. Directors of the Board have already given the green signal to go ahead with the deal unanimously. John Pittard, RXP Chairman said the board agrees the Capgemini offer signifies an excellent opportunity for RXP shareholders to attain certain value at a considerable premium. The RXP board unanimously concluded the scheme is a great outcome for all RXP stakeholders: employees, shareholders, clients and other business partners, Pittard added.
CEO and Co-founder, Ross Fielding, says the proposed deal is a good fit for the local digital services consultancy. A truly global organization, Capgemini is a leader in engineering, technology, consulting and digital transformation services, Fielding added. RXP is a natural fit and he is very excited by the growth opportunities this deal will create for its about 550 employees in a global and culturally aligned business, he says.
Additionally, the valued clients of RXP are to gain from the integrated group through increased scale, greater delivery capabilities and a broader skill set,” he concludes.
More on the acquisition announcement
RXP Services recently faced a 10% revenue slump at $127 million for the full FY ending 30th June 2020. Underlying EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) decreased by 8% to $15.4 million for the entire year. However, the EBITDA for the second half was $8.6 million, up 29% on the first half. Post the announcement of the proposed acquisition, RXP Services saw its shares jump to $0.525 on the morning of 11th November 2020 which closed on 10th November at $0.340.
Luc-Francois Salvador Capgemini Executive Chairman APAC and Middle East said the acquisition of RXP Services will help Capgemini in becoming a market leader in Australia in data, digital and cloud while enhancing the company’s ability to offer clients scale, value and cutting-edge expertise.
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