After writing a series of blog posts about Brazil as a destination for IT services I thought Capgemini's latest acquisition was worth a mention.
The French IT services giant has taken a 55% share in Brazilian IT service provider CPM Braxis for €233m.
Brazil has a really established IT services sector which serves a huge internal market. The Brazilian government is currently throwing money at the challenge of winning offshore IT business with international companies.
The deal will give Capgemini access to the large Latin American market and offer it more options in terms of services for its international customers.
Brazil apparently accounts for nearly half the total Latin America IT services market, which is worth about $23bn.
CPM Braxis, which has over 5,500 employees and over 200 clients, is big in the financial services sector. It provides application outsourcing, enterprise application services, infrastructure integration and infrastructure services.
Capgemini has the option to buy the company outright in the future.
José Luiz Rossi, Chief Executive Officer of CPM Braxis, said being part of Capgemini said being part of Capgemini will help the company grow its internal and external business.
"Joining a group with the worldwide reach of Capgemini is a great opportunity, in the high-growth IT services market in Brazil. We will expand our client base by making our services available to Capgemini's international clients present in Brazil, and will also be able to offer Capgemini's global expertise to support our major Brazilian clients in their international development projects."
Brazil will become the Group's sixth largest country in terms of headcount, with more than 6,200 employees.
Here are some previous blog post I wrote about IT services in Brazil.