The acquisition by Canadian IT giant Constellation Software was recently approved by the Interfederal Screening Committee. That scrutinises non-European acquisitions of critical infrastructure. Cipal-Schaubroeck (CS) supplies IT services to 70% of Flemish governments. The acquisition evokes resistance. The Vlaamse Vereniging voor Steden en Gemeenten (Flemish Association for Cities and Municipalities) warns of excessive dependence and a restriction of competition on the market, the financial newspaper De Tijd writes. There has long been a duopoly among software suppliers for local authorities. Apart from CS, there is only CEVI, the subsidiary of Walloon integrator NRB. Mutual price fixing is feared.
Did €90 million framework contract play a role in the takeover?
But there is more: Cities and municipalities had no say in the acquisition of Cipal Schaubroeck. ‘Everything was prepared through legal constructions, strategic tenders and conflicts of interest,’ writes De Tijd. The deal would have been good for €200 million. CS posted a turnover of 97 million euros in 2023. It forecasts an ambitious annual growth of over 10 per cent, to €176 million in 2029. Cipal Schaubroek recently won a 4-year €90 million framework contract for HR and financial management for cities and municipalities. Officially, this was only awarded after the takeover, but quite a few administrators were already aware of it. That would have played a part in the takeover.
Full story De Tijd: https://www.tijd.be/politiek-economie/belgie/vlaanderen/zonder-inspraak-verkocht-hoe-vlaamse-gemeenten-hun-digitale-kroonjuwelen-kwijtspeelden/10611465.html
