In today's top news, Capgemini Group announced that it has made progress in reaching an agreement to acquire VariQ. At the same time, the company also announced the launch of an employee stock ownership plan. Let's find out more about these two news items.
First, let's look at Capgemini's next strategic move. Capgemini issued a press release this morning announcing that it had reached an agreement on Tuesday to acquire VariQ. VariQ is a company that provides software development, cybersecurity and cloud services to U.S. federal departments and agencies.
The financial terms of this transaction have not yet been disclosed by the group. However, it is understood that VariQ will be integrated into the group's Capgemini Government Solutions subsidiary, which operates independently of the group to provide services to US federal agencies. The acquisition of VariQ will enable Capgemini to strengthen its position in the federal market.
Of course, the completion of this new strategic acquisition remains subject to the approval of the Committee on Foreign Investment in the United States and the Defense Counterintelligence and Security Agency. This acquisition is not expected to be completed before the end of 2021, but will undoubtedly represent a real growth opportunity for the group.
This strategic operation is not the only one that marks the news of Capgemini this Wednesday. Indeed, another press release published yesterday evening by the group announced the launch of an eighth ESOP (Employee Share Ownership Plan). This plan has been offered to nearly 96% of the group's employees and aims to involve employees in the group's development and performance.
In more detail, this eighth employee share ownership plan launched by the group will result in a capital increase representing a maximum of more than 4 million shares, which represents approximately 2.37% of the existing capital. The settlement-delivery of these shares will take place on December 16 at the latest.
The reservation period for the shares will be open from 15 September, i.e. this Wednesday, until Monday 4 October inclusive. We do not yet know the subscription price for the shares of this plan, which will be fixed and therefore communicated on November 3. As for the capital increase, it will take place on 16 December 2021.
The end of the year thus heralds several major strategic changes for Capgemini and its share price.