Capgemini to acquire US-based cybersecurity, software contractor VariQ

Paris-based IT services firm Capgemini Group entered into a stock purchase agreement to acquire cybersecurity and software contractor VariQ. With the acquisition, Capgemini aims to strengthen its position in the US federal market and build momentum for growth.

VariQ would be integrated into Capgemini Government Solutions LLC, its independent operating division working with US government agencies.

Founded by CEO Ben Edson in 2003, VariQ is headquartered in Rockville, Maryland. It provides software development, cybersecurity and Cloud services for federal government departments and agencies across the US. It delivers services through multiple contract vehicles, including the Alliant 2 contract vehicle. Additionally, the company in 2020 acquired a digital transformation entity, Rivet Logic, which serves a set of commercial clients and would join with Capgemini in the US to expand digital capabilities and key technology partners.

Capgemini announced the transaction Sept. 14, and it is expected to close by the end of 2021, subject to applicable US regulatory approvals; the transaction must also be approved by the Committee of Foreign Investment in the United States and the Defense Counterintelligence and Security Agency.

“As a company we are continuing to find ways to expand our ability to serve US government agencies and this acquisition would augment our digital and agile capabilities while growing our talent base,” said Jim Bailey, CEO of Capgemini’s Americas Strategic Business Unit and group executive board member. “This acquisition marks an important moment for Capgemini Government Solutions and our vision for growth in the Americas.”

“The addition of strong talent and expanded best-in-class contract vehicles would advance Capgemini Government Solutions’ ability to provide industry-leading solutions to the agencies we serve,” said Doug Lane, CEO, Capgemini Government Solutions LLC. “As we look ahead, we are motivated by the ability to cultivate strong partnerships with those we serve to deliver on transformative digital initiatives.”