French IT firm CapGemini announced to buy US rival IGATE for 4 billion US dollar (Download PDF)


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French IT firm CapGemini announced to buy U.S. rival IGATE for four billion US dollar. With this deal, North America becomes the largest region of the Group. Bank of America Corp advised IGATE while Lazard Ltd advised Cap Gemini on the transaction. CapGemini of France IT Company will finance the deal partly through 1 billion US dollars of its own cash, along with an equity portion that will not exceed a 6 percent dilution of the French company’s share capital. More than 2 billion US dollar would be financed through debt.

CapGemini had the backing of shareholders representing 54 percent of IGATE’s share capital.

  • According to Cap Gemini, the deal would enhance earnings by 12 percent in 2016 and 16 percent in 2017. The combined group’s operating margin would be above 10 percent.
  • Globally IGATE Company’s employs are 33000 people with 75 % of them in India. The combined company would have more than 100000 employees there, or 48 percent of its workforce. It has grown quickly since its 1996 stock market listing.
  • IGATE does about 80 % of its business in North America, and would represent 30 percent of the combined group’s estimated 2015 revenue of 13.58 billion US dollar.

- Published/Last Modified on: April 30, 2015


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