Capgemini to expand in North America with $4B acquisition of iGate
French IT services company Capgemini is to acquire iGate in the U.S. for US$4.0 billion, in a bid to expand its presence in the North American market.The deal will boost Capgemini’s revenue from North America by 33 percent to $4 billion, making the region the first to account for 30 percent of its revenue.The iGate acquisition also brings to Capgemini additional expertise in application and infrastructure services, business process outsourcing and engineering services. Capgemini also gets iGate’s clients, including key customers such as General Electric and Royal Bank of Canada, to whom it can now cross-sell its own services.After the acquisition, the merged entity will have an estimated combined revenue of €12.5 billion ($13.6 billion) in 2015, an operating margin above 10 percent and around 190,000 employees. About 50,000 of these employees will be focused on North American clients.To read this article in full or to leave a comment, please click here