El Corte Inglés sells IT subsidiary to Gfi Group

IT software and services provider Gfi Group has completed the acquisition of Informática El Corte Inglés (IECISA), the IT subsidiary of major Spanish department store chain El Corte Ingle´s.

Announcing confirmation of the deal this morning (27 April), Gfi said the acquisition had been approved by Spanish government and competition authorities, and claimed the deal placed it “among the foremost IT service companies in Europe”. The cost of the deal has not been disclosed.

Both the retailer and the tech company had reached an agreement for the deal in December 2019. France-based Gfi has been providing services to El Cortes Ingle´s related to the digital transformation process currently under way at the business, and taking ownership of the company as it expands its presence in Spain, Portugal and Latin America.

Vincent Rouaix, CEO of Gfi, commented: “The acquisition of this strategic asset, amidst the current health crisis, confirms the relevance and complementarity to our own business in terms of skills and expertise. 

“It also demonstrates the confidence that we have in the future in a changed world where digital technology is expected to grow dramatically, and in the benefits that the rebound in the aftermath of the crisis will bring.”

IECISA’s workforce will now join Gfi as a result of the acquisition, with the newly enlarged business saying the deal will strengthen its digital systems integration offering in sectors such as retail, transport, and smart cities. Other IECISA expertise recognised by Gfi include cybersecurity, its role in the formation of the 'smart' workplace, and SAP ERP integration.

In December, when the deal was initially announced, El Corte Inglés said it would allocate the proceeds of the disposal to reducing its debt.

IECISA was founded in 1988 and in the last fiscal year to 28 February 2019 it turned over €703 million.