Apr. 27, 2015, 4:15 AM
- Looking to make North America its largest market, Cap Gemini (OTCPK:CGEMY) plans to buy U.S.-based iGATE (NASDAQ:IGTE) for $4B, or $48 per share.
- The deal, which has been agreed on by both boards, will be financed through a combination of the French company's cash, debt and an equity portion that will not exceed a 6% dilution of its share capital.
- Cap Gemini also expects the acquisition to enhance earnings by 12% in 2016 and 16% in 2017.
- Previously: IGATE reportedly sees buyout interest; shares +4.2% (Apr. 17 2015)
Apr. 17, 2015, 10:00 AM
- India's Business Standard reports French IT firms Capgemini and Atos are in early-stage talks to acquire IGATE (NASDAQ:IGTE).
- Capgemini/Atos are said to be negotiating with P-E firm Apax Partners (owns a 29% IGATE stake), which is said to be looking for an exit after converting a $480M loan to IGATE into equity.
- No word on a potential buyout price; IGATE's market cap currently stands at $3.6B. Shares are within $2 of a 52-week high of $45.72.