Today's Paper

Capgemini acquires iGATE for $4 billion

French IT services company Capgemini on Monday announced the acquisition of US-based IT services company iGATE for $4 billion.

Through the acquisition Capgemeini, which has significant presence in the European market, is trying to widen its presence in North America.

Apart from getting a strong-hold in the US, the buyout will also give Capgemini’s Indian operations a new scale, allowing it to compete on a par with the US and Indian companies.

The company co-founded by Sunil Wadhwani and Ashok Trivedi is listed in Nasdaq. However, majority of its workforce is based in India.

“The merger agreement has been approved unanimously by both Capgemini’s and iGATE’s Board of Directors. The transaction has also been approved by the written consent of shareholders holding a majority of iGATE’s shares,” both the firms said.

At present, iGATE has a revenue of around $1.3 billion and over 30,000 employees spread across its centres in India, the US, Europe and China.

In India, iGATE has centres in Bengaluru, Mumbai, Pune, Chennai, Hyderabad; while the French major has its centres in nine locations and employs more than 50,000 people.

The deal is subject to necessary approvals and is expected to close in the second half of 2015 and iGATE will become the subsidiary of Capgemini North America.

Recommended for you