Capgemini, the multinational management consulting firm announced on 27th April 2015 that it is all set to acquire IGATE.
Image: company website
IGATE is an IT services company for a staggering $4 billion, comprising of cash consideration of 48 dollars per share.
Cap Gemini S.A., headquartered in Paris, France, is a French multinational corporation providing IT services. It is world’s leading outsourcing, consulting and professional service provider. It has approximately 145,000 employees spread in 40 countries. The company was founded by Serge Kampf in 1967 in Grenoble, France. The current CEO as well as the chairman of the group, Mr. Pushpendra has headed the company since December 2001. IGATE, headquartered in Bridgewater, New Jersey, is an IT services company providing technology consultancy and services. The firm has its spread worldwide with offices in Asia, North America, Japan, Europe and Australia. It has approximately 31000 employees and consists of some 70 offices around the globe. The US listed company has its current revenue of $1.3 billion, comprising of double digit growth and an operating margin of 19%.
Through the acquisition, Capgemini’s key businesses in infrastructure and application, engineering and BPO services have been strengthened. Also, the deal has given Capgemini the access to IGATE’s flagship clients like General Electric and Royal Bank of Canada. The move is also a part of CapGemini’s strategy to strengthen its North American market. The transaction will lead to a group with a combined revenue of €12.5 billion in 2015, above 10% operating margin and some 190,000 employees.