Business, Investments

Global IT Companies Shake Hands: Capgemini to Acquire IGate for $4.04B

Image Source: Capgemini

Image Source: Capgemini

French IT services company Capgemini has announced that it will acquire US-based technology and services company, IGate for a deal amount of $4.04 billion.

Both companies have entered into a definitive merger agreement under which Capgemini will acquire IGATE. IGATE is a technology and services company, with strength in the financial services sector, but also active in retail, manufacturing and healthcare. The company had a revenues of over $1.2 billion, double-digit growth, 19% operating margin last year and also have a global employee talent capital of 33,000.

The deal will be financed through a combination of French company’s own cash debt and an equity portion that will not exceed a 6% dilution of Capgemini’s share capital. The transaction is expected to close in the second half of 2015.

The acquisition will strengthen Capgemini’s business in application and infrastructure services as well as business process outsourcing and engineering services. This transaction would lead to a group with an estimated combined revenue of $13.58 billion in 2015, an operating margin above 10% and around 190,000 employees.

The new company also stands to offer more platform-based and intellectual property-based solutions to help clients respond to and stay at the forefront of their market.

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