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Capgemini set to buy IGATE in USD 4 billion deal

Capgemini, the French IT services company is going to buy US based IGATE Corp for $ 4 billion cash in a deal which will make the North America its biggest market.

“IGATE, a technology and services company headquartered in New Jersey with 2014 revenues of $1.3 billion, double-digit growth, and a 19 per cent operating margin, is to be acquired for $48 a share,” Capgemini said.

There will be a combination of Capgemini’s own cash, debt and an equity portion which will not exceed a 6% dilution of its share capital to finance the deal.

Capgemini said that for the deal it had the backing of shareholders representing 54% of IGATE’s share capital and it would enhance earnings immediately.

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