French IT firm CapGemini on 26 April 2015 announced to buy U.S. rival IGATE for 4 billion US dollar. With this deal, North America becomes the largest region of the Group. Bank of America Corp advised IGATE while Lazard Ltd advised Cap Gemini on the transaction.
CapGemini will finance the deal partly through 1 billion US dollars of its own cash, along with an equity portion that will not exceed a 6 percent dilution of the French company's share capital. More than 2 billion US dollar would be financed through debt.
The company had the backing of shareholders representing 54 percent of IGATE's share capital.
The deal would enhance earnings by 12 percent in 2016 and 16 percent in 2017, according to Cap Gemini. The combined group's operating margin would be above 10 percent.
IGATE employs 33000 people globally, with 75 percent of them in India. The combined company would have more than 100000 employees there, or 48 percent of its workforce. It has grown quickly since its 1996 stock market listing.
IGATE does about 80 percent of its business in North America, and would represent 30 percent of the combined group's estimated 2015 revenue of 13.58 billion US dollar.
When: 26 April 2015