Capgemini, the France based IT services major announced the acquisition of iGate, a US based IT service company for an all-cash deal valued at $4 billion.
The deal is targeted to enhance Capgemini’s market presence in North American region, where iGate already derives 70 per cent of its revenues from clients like GE, MetLife and Royal Bank of Canada.
Ashok Trivedi and Sunil Wadhwani, the Indian-American co-founders and co-chairmen of IGATE, own 12.81 percent and 12.99 percent, respectively, of the shares and could collect more than $1 billion between them, through the deal.
According to a released statement, Paul Hermelin, chairman and CEO of Capgemini, said: “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 India-based companies.”