The Works owner RXP Services set to be acquired by Capgemini

Digital services consultancy RXP Services (also referred to as RXP Group) is set to be acquired by Capgemini, a global consulting, technology and digital transformation business.

RXP Services made media and marketing industry headlines in late 2017 when it acquired leading independent creative agency, The Works.

ASX-listed RXP Services and Capgemini Australia have entered into a scheme implementation deed proposing that Capgemini Australia acquires 100% of the shares in RXP by way of a Scheme of Arrangement that is subject to shareholder and court approval.

Directors of the Board of RXP Services have unanimously recommended that shareholders vote in favour of the scheme.

RXP Services CEO Ross Fielding

RXP co-founder and CEO, Ross Fielding, said in a statement: “Capgemini is a truly global organisation, and a leader in consulting, engineering, technology and digital transformation services. RXP is a natural fit for Capgemini, and I am very excited by the growth opportunities this will create for our ~550 employees within a global and culturally aligned business. In addition, RXP’s valued clients stand to gain from an integrated group through increased scale, a broader skillset, and greater service capabilities.”

Executive chairman of Capgemini Asia Pacific and the Middle East, Luc-Francois Salvador, added: “The acquisition of RXP will make Capgemini a market leader in Australia in digital, data and cloud, enhancing our ability to provide our clients with value, scale and world-class expertise.

“This transaction will be a step change for Capgemini in Australia and illustrates Capgemini’s growth ambition in Asia Pacific. Both companies share similar values and vision of the role of technology and humanity in successfully transforming businesses and society.”

The Works Co-founders Douglas Nicol, Kevin Macmillan, Damian Pincus

RXP Services recently posted a 10% dip in revenue at $127 million for the full financial year ending 30 June 2020.

Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 8% to $15.4 million for the full year, but the second half – $8.6 million – was up 29% on the first.

News of the proposed acquisition saw RXP Services shares jump to $0.525 this morning, having closed 10 November at $0.340.


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