- Capgemini will sell its US federal government business to ITC Federal soon
- The deal follows rising US government investment in AI and digital infrastructure
- Capgemini Government Solutions made less than 0.4% of Capgemini's 2025 revenue
Capgemini is set to divest its US federal government business to ITC Federal, a technology services provider serving agencies across law enforcement, homeland security and defence.
The transaction is expected to close in the coming weeks, subject to customary closing conditions, Capgemini said on September 12.
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The deal comes against a backdrop of accelerating US government investment in artificial intelligence and digital modernisation, with federal agencies seeking the cloud, data and digital infrastructure needed to deploy AI systems more widely.
Capgemini Government Solutions accounted for about 0.4% of the French IT services group's global revenue in 2025 and less than 2% of its US revenue.
Capgemini had announced the planned divestment earlier this year when it launched the process to sell the subsidiary.
US Government's Growing AI Push
The broader US government push to expand access to commercial AI tools is also reshaping the federal technology market.
OpenAI is moving away from a $1-a-year pilot programme for federal agencies and will instead offer its models to government users at a 50% discount to standard pricing, according to the US General Services Administration.
The new arrangement is scheduled to take effect on October 1 and will run for more than two years.
The GSA said OpenAI's earlier government programme was used by 3.5 million federal employees and generated an estimated $1.4 billion in cost savings.
The federal AI market has also become increasingly competitive.
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Anthropic secured a similar $1-a-year arrangement last year, but its relationship with the US government later came under strain over disagreements with the Pentagon regarding the use of AI in surveillance and autonomous weapons.
For Capgemini, the sale represents a relatively small portfolio transaction as the company continues to focus on its broader technology, cloud, data and artificial intelligence businesses.
The group reported €22.5 billion in revenue in 2025 and has more than 410,000 employees across over 50 countries.
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