The French management consulting corporation Capgemini (opens in new tab)acquired IGATE Corporation, the company announced via press release today. Pursuant to the terms of the merger agreement, announced on April 27, 2015, IGATE became the indirect wholly owned subsidiary of Capgemini.
IGATE Corporation is a prominent technology and services company headquartered in New Jersey with 2014 revenues of $1.3 billion (£830m).
The transaction is expected to be accretive to Capgemini normalised Earnings Per Share (EPS) by at least 12 per cent in 2016 and 16 per cent in 2017.
IGATE shares will cease trading and will be delisted from the NASDAQ Global Select Market.
Paul Hermelin, Chairman and CEO of Capgemini, said: “This acquisition represents a major step in Capgemini’s history. With IGATE, our operations in North America have taken a new dimension and are now our largest market in revenues. Our combined operations in India have now reached the size to compete at par with the world leaders in our industry. It will also benefit our customers by taking further our industrialisation and innovation initiatives. On behalf of our group, I’m glad to welcome the 31,000 people of IGATE to Capgemini.”
IGATE Corporation became the indirect wholly owned subsidiary of Capgemini and each issued an outstanding share of IGATE Corporation common stock (other than shares of IGATE Corporation common stock owned as treasury stock or by Capgemini) was converted into the right to receive $48.00 (£30) in cash, without interest.