×

Once registered, you can:

  • - Read additional free articles each month
  • - Comment on articles and featured creative work
  • - Get our curated newsletters delivered to your inbox

By registering you agree to our privacy policy, terms & conditions and to receive occasional emails from Ad Age. You may unsubscribe at any time.

Are you a print subscriber? Activate your account.

BtoB

Cisco, Cap Gemini to start $4.2 billion b-to-b venture

Published on .

Most Popular
San Jose, Calif.--In one of the biggest b-to-b Internet deals in recent memory, Cisco Systems and Cap Gemini SA, Paris, will form a $4.2 billion venture to sell e-commerce software and consulting services to telecommunications and Internet companies. Cisco will buy 4.9% of the venture for $164 million; that amount is 20% below market value because of Cisco's minority position, Cap Gemini executives said. Additionally, Cisco will buy 2.6 million new Cap Gemini shares for $671 million. The $4.2 billion amount is based on the $205 million value Cap Gemini assigned to Cisco's 4.9% stake, according to published reports. Cap Gemini will contribute 4,600 people to the venture, while Cisco will contribute between 50 and 100. The venture will first target European, and then U.S., companies.
In this article: