Capgemini and IGate announced that they have entered into a definitive merger agreement under which Capgemini will acquire IGate for a cash consideration of $48 per share.
The transaction will amount to $4.0 billion and is expected to be immediately accretive to Capgemini's normalized Earnings Per Share (EPS).
Both the companies Capgemini's and IGate's Board of Directors have approved for the merger. The transaction has also been approved by the written consent of shareholders holding a majority of IGATE's shares.
This transaction would lead to a group with an estimated combined revenue of €12.5 billion in 2015, an operating margin above 10% and around 190,000 employees.
The combined Group will pass the 100,000 employees landmark in its Rightshore® delivery centers in 2015., the company said in the press release.
"In Capgemini, we have found a partner that will advance our ability to innovate and build industry solutions that will enhance the value proposition we bring to our clients. In addition, this powerful combination will provide exciting opportunities for our employees to expand their capabilities", Ashok Vemuri, CEO of IGate said in the press release.