The combined entity is estimated to have a revenue of $12.5 billion in 2015
French IT services major Capgemini acquires iGate Corporation for a cash consideration of $48 per share valuing at $4 billion.
Chennai: French IT services major Capgemini acquires iGate Corporation for a cash consideration of $48 per share valuing at $4 billion. The deal, which is one of the largest buy-out in the IT industry is expected to be immediately accretive to Capgemini’s normalised earnings per share. The transaction is expected to close in the second half of 2015.
Headquartered in New Jersey, iGate is a $1.3 billion revenue company with double-digit growth and a 19 per cent operating margin and 79 per cent of its revenues come from North America followed by Europe (14 per cent) and Asia-Pacific (7 per cent).
This transaction would lead to a group with estimated combined revenue of $12.5 billion in 2015, an operating margin above 10 per cent and around 1,90,000 employees.
The acquisition will strengthens Capgemini’s key businesses in application and infrastructure services as well as BPO and engineering service, and will also fulfills Capgemini’s strategy in expanding its presence in the North American market.
Paul Hermelin, chairman and CEO of Capgemini, said, “It will give us a new status on the American market, and take further our industrialization journey to offer ever more competitive services to our clients. This will also give to the group’s Indian operations a new scale, allowing us to compete on par with the best US-based and Indian-based companies.. ”
Adding to this, Ashok Vemuri, chief executive officer (CEO) of iGate said, “In Capgemini, we have found a partner that will advance our ability to innovate and build industry solutions that will enhance the value proposition we bring to our clients. In addition, this powerful combination will provide exciting opportunities for our employees to expand their capabilities.
( Source : dc correspondent )
Next Story
