Capgemini acquires IGATE for $4 bn in all-cash deal

French IT services firm Capgemini has announced its plan to acquire US based information technology (IT) outsourcer IGATE for US 4 billion dollars.
This acquisition will help Capgemini to strengthen its foothold in the North American market.
As per the merger agreement, Capgemini will acquire IGATE for a cash consideration of $ 48 per share and the whole transaction will amount to $4 billion.
This transaction is expected to close in the second half of 2015 and will be financed through a combination of cash and equity.
The combined entity will have revenue of estimated 12.5 billion euros in 2015 and around 1.9 lakh employees.
This merger is also one of the largest in the Indian IT sector. This acquisition will also provide Capgemini offshore capabilities to compete with IBM, Accenture and large Indian infotech services players.

Month: Current Affairs - April, 2015