Cap Gemini Is in Exclusive Discussions to Buy Prosodie From Apax Partners

Cap Gemini SA (CAP), Europe’s largest computer-services company, is in exclusive talks to buy Prosodie SA in a deal that would value the software provider at 382 million euros ($551 million).

Cap Gemini, based in Paris, is negotiating with funds managed by private-equity firm Apax Partners and Prosodie’s management for the potential deal, the company said in a statement today. The purchase is predicted to be finalized by the end of July, Cap Gemini said. Prosodie provides software and services for e-commerce and telecommunications companies.

Cap Gemini is hunting for acquisitions in new sectors and technologies as it competes with rivals such as Atos Origin SA (ATO), which is merging with Siemens AG (SIE)’s computer-services unit to create Europe’s biggest information-technology provider. Countries such as Mexico and Turkey, as well as emerging technologies such as high-tech water grids, may be acquisition targets for Cap Gemini, deputy managing director Paul Spence said last month.

Cap Gemini spent 233 million euros last year for a majority stake in CPM Braxis, a Brazilian information-technology provider, making it the market leader in the Latin American country. Prosodie would be its fourth acquisition this year, following two smaller deals in France and another in the U.S.

The purchase of Prosodie would add to earnings starting in the second half as the companies are looking for sales gains and not planning significant cost savings or job cuts, Chief Executive Officer Paul Hermelin said today on a conference call.

Cap Gemini shares rose 2 percent to 38.18 euros as of 1:07 p.m. in Paris, valuing the company at 6 billion euros.

To contact the reporter on this story: Matthew Campbell in Paris at mcampbell39@bloomberg.net.

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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