Capgemini to acquire IGate

Capgemini is a French Multinational Management consulting corporation headquartered in Paris, France. It provides IT services and is one of the world largest consulting, outsourcing, and professional services companies with almost 145,000 employees in over 40 countries.

Recently, Capgemini announced that it will acquire IGate in a transaction that will amount to $4.04 Billion that will make North America into its biggest market and hand IGate Founder a $1 Billion windfall. IGate, which has strength in the financial sector, has grown quickly since its 1996 stock market listing. IGate does about 80 percent business in North America and would represent 30 percent of the combined group estimated 2015 revenue of $13.58 Billion.

The combination of IGate and Capgemini provides cross selling revenue synergies of $100-150 Million and annual efficiency gains estimated at $75-100 Million. Capgemini had in 2006 acquired Kanbay International, which had significant operations in India. This helped increase Capgemini presence in India.

With the acquisition, Capgemini would add new clients such as General Electric Co and Royal Bank of Canada. IGate employs 33,000 people globally, with 75 percent of them in India. The combined company would have more than 100,000 employees there, or 48 percent of its workforce. The new company also stands to offer more platforms based and intellectual property based solutions to help clients respond to and stay at the forefront of their market.