French IT services provider Capgemini will acquire IGATE for £2.6 billion ($4bn) , a move which will see the new entity aggressively expand its North American presence.
The acquisition, which was announced today for a cash consideration of $48 (£32) per share, will lead to a group with an estimated combined revenue of £9 billion in 2015, an operating margin above 10% and around 190,000 employees, said Capgemini.
Capgemini’s CEO Paul Hermelin called the move an “important transaction in Capgemini’s history”, as the acquisition fulfils one of the company’s targets of expanding its presence in the North American market.
Following the deal’s completion, North America will account for around 30 percent of all Capgemini’s revenue, a majority, compared to more than 70 percent of the firm’s revenue coming from the UK and Ireland in the last quarter.
The move sees Capgemini ramp up its efforts against IBM and Accenture in the region, with an estimated 50,000 employees set to be working with Capgemini’s North American clients.
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