A French company is buying a Bridgewater integrated technology solutions firm for $4 billion, the two announced Monday.Capgemini, which is headquartered in Paris, will pay $48 per share for IGATE, which had 2014 revenue of $1.3 billion, according to a news release.
“I am very pleased to announce a very important transaction in Capgemini’s history,” Paul Hermelin, chairman and CEO, said in a statement. “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 industrialization 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 U.S.-based and Indian-based companies.”
Both boards of directors have approved the merger unanimously, and a majority of IGATE’s shareholders has also signed on, the companies said.
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“We are pleased to have found a great partner for the business and are confident that our employees and customers will benefit from the enhanced service offerings and resources available to them at Capgemini,” Ashok Trivedi, co-founder and co-chairman of IGATE, said in a prepared statement.
The combined company will have an estimated revenue of 12.5 billion euros — approximately $13.6 billion — in 2015, and will employ about 190,000 people worldwide. The North American region will become Capgemini’s largest after the acquisition, with approximately 30 percent of the combined company’s revenue.
“We are gratified that the company we founded over 25 years ago has developed into a global enterprise with over 30,000 employees, a trusted partner to over 250 clients, a market value of over $4 billion and one of the most respected brands in the IT industry,” Sunil Wadhwani, the other co-founder and co-chairman of IGATE, said in a statement.
Capgemini indicated that the acquisition of IGATE will strengthen key businesses, including application and infrastructure services; add new flagship clients such as General Electric and Royal Bank of Canada; and expand its presence in the North American market.
“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,” Ashok Vemuri, IGATE’s CEO, said in a statement. “In addition, this powerful combination will provide exciting opportunities for our employees to expand their capabilities.”
The merger is expected to close in the second half of the year, subject to customary closing conditions and approvals.
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