(Image source from: Capgemini to acquire iGATE with $4 billion at $48 per share})

The France-based IT services major Capgemini has announced the acquisition of New Jersey (US) based iGATE at a price of $48 per share, means total deal would stand at $4 billion. If the deal gets confirmed, Capgemini will be having boons in the form of good presence in North American market and Indian working staff.

According to the reports, iGATE is having the headcount of over 33,000 and iGATE draws 70 per cent of its revenues from North America with clients like GE, MetLife and Royal Bank of Canada.

Paul Hermelin, chairman and CEO of Capgemini, said: “It will give us a new status on the American market, and take further our industrialisation journey to offer ever more competitive services to our clients. This will also give to the group’s Indian operations a new scale, allowing us to compete on par with the best US-based and India-based companies.”

Following the acquisition, iGATE will become a wholly owned subsidiary of Capgemini operations in the US, iGATE had ended 2014 with a revenue of $1.3 billion with 281 clients. Among the total staff of iGATE, one fourth is from India.

-Kannamsai