With an aim to expand the high-growth emerging markets, Capgemini, which is Europe's leading information technology group, has finalized a deal worth 233 million Euros ($298 million) in cash, to buy a 55% stake in the Brazilian peer CPM Braxis.

According to Chief Executive Paul Hermelin, they’ll soon become the leaders of the Brazilian market with the help of this agreement. Half the value of the Latin American market is represented by what is the potential of Brazil. And thus, this deal is expected to be very profitable for the French Group.

Since, Capgemini is planning to keep its foot in the emerging markets from the past many months; therefore, it is seeking acquisitions, particularly some larger buys.

With 5,500 employees and annual revenues worth 450 million Euros, CPM Braxis has its enterprise value at 437 million Euros, as estimated by Capgemini. The other shareholders of CPM Braxis have a choice in their hands that they can sell their shares; and the French group, Capgemini, thus has a chance to purchase other shares of the Company also, on certain other dates of the year.

According to Dov Levy, an Analyst at French brokerage CM-CIC Securities, this deal will prove to be a ‘good strategic move for Capgemini’ with which it can enter the markets of Brazil.

He added, “We see the price paid as being reasonable given the growth rates for the country and the company, and its ability to improve its margins”.