Cap Gemini to acquire US Igate for $4.04bn

Capgemini announced on Monday it had acquired US-listed technology and services company Igate for $4.04bn (£2.66bn).

The French software firm will acquire IGATE for a cash consideration of $48 (£31.6) per share, in a move that will make North America its biggest market, where the combined company will collect 30% of their expected $12.5bn (£8.23bn) in revenues for 2015.

“The transaction will amount to $4.0 billion and is expected to be immediately accretive to Capgemini’s normalized Earnings Per Share (EPS)”, both companies said in a statement.

The transaction will be financed through a combination of own cash and debt, with the equity portion being limited by the condition that it does not translate into a dilution greater than 6% of the Paris-based company's share capital.

It will take further our industrialization journey to offer ever more competitive services

Capgemini's chairman and chief executive officer (CEO) Paul Hermelin stressed that this acquisition fits well into the IT outfit´s existing strategic goals. “It will give us a new status in the American market, and take further our industrialization journey to offer ever more competitive services to our clients,” he said.

Ashok Vemuri, CEO of IGATE added: "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."

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