Technology groups Capgemini and IGATE have announced a definitive merger agreement under which Capgemini will acquire IGATE for a cash consideration of US$48 per share.
The transaction, which will amount to US$4.0bn, creates a group with estimated combined revenues of US$12.5bn in 2015, of which North America will represent around 30% of the total.
“This transaction fulfils one of the essential components of Capgemini’s strategy in expanding its presence in the North American market,” the group confirmed in a statement. “Growing its presence in North America, by far the largest and most innovative technology and services market in the world, is at the top of [our] strategic agenda.”
Paul Hermelin, chairman and CEO of Capgemini, added: “I am very pleased to announce a very important transaction in Capgemini’s history. IGATE is a leading company that perfectly fits our strategic ambition. It will give us a new status on the American market, and take further our industrialisation 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.”
Capgemini said that the planned deal will consist in a one-step cash merger between IGATE Corporation and a subsidiary of Capgemini North America. The merger has been approved by the written consent of IGATE Corporation shareholders representing approximately 54% of the capital -subject to a 30-day fiduciary out period during which IGATE Corporation could accept a superior proposal.
The merger is subject to customary closing conditions, including regulatory approvals and is expected to close in the second half of 2015.
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