Capgemini shares surged nearly 7 % on Thursday February 18,2016 after the French IT major reported a 20 per cent rise in full-year operating profit and predicted a wider operating margin and increased revenue for 2016. Capgemini drove tech shares higher in Europe today.
Capgemini also announced the acquisition of Fahrenheit 212, an innovation and design consultancy firm, to drive North America growth.
Capgemini, which purchased its US rival IGATE last year, said North America was now the group's biggest region, with 31 % of sales in the second half of 2015.
Capgemini had announced a $4 billion deal to acquire IGATE in April 2015. 75 % of employees IGATE's employees are based in India.
Capgemini said its operating profit rose to 1 billion euros ($1.1 billion) from 853 million in 2014. Revenue jumped 12.7 %to 11.9 billion euros, the company said on Thursday. Capgemini's operating margin beat estimates, growing to 10.6 % or 1.26 billion euros, from 9.2 % in 2014.
"Our 2015 performance exceeds our guidance that was increased in July following our first half results," the company said in a statement.
For 2016, the group forecast revenue growth, at constant exchange rates, of between 7.5% and 9.5 %
It also predicted an operating margin of 11.1 % to 11.3 % and organic free cash flow generation above 850 million euros.
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