Cisco and Cap Gemini launch Web services venture

NEWS Cap Gemini and Cisco are to create a multimillion pound Internet services and consulting company. The as yet unnamed company will provide services to telecom service providers and ISPs. Data and network design specialists from Cap Gemini's telecom and media sectors as well as staff from the Gemini Consulting organisation - a total of 4,600 people - will combine forces. Under the terms of the deal, Cisco will invest $835m in the Cap Gemini Group. From this sum, $164m will be invested in the newly created company while $671m will be ploughed into Cap Gemini SA. Cap Gemini will hold a 95.1 per cent stake and Cisco will control the remaining 4.9 per cent. Alexandre Haeffner, the current chairman of Cap Gemini's Telecom and Media unit, will head up the company. The board of directors will consist of five Cap Gemini directors and one from Cisco.