French outsourcing major Capgemini today completed the USD 4-billion deal to acquire I-Gate Corporation.
"Capgemini today announced that it has completed the acquisition of Igate Corporation," the company said in a statement.
The announcement comes on a day when the country's fair trade regulator Competition Commission announced its approval for the acquisition. Both Capgemini and the New Jersey-registered I-Gate have got sizeable operations in the country and collectively employ over 80,000 professionals.
"Our combined operations in India have now reached the size to compete at par with the world leaders in our industry," Capgemini chairman and chief executive Paul Hermelin said.
Capgemini had in April announced that its decision to buy out I-Gate for USD 4 billion in an all cash deal to create an entity with a combined revenue of USD 14 billion to take on rivals like IBM.
The acquisition will give Capgemini access to I-Gate's customers like General Electric and Royal Bank of Canada and boost its US-generated business to 30 per cent of its total revenue and make North America its largest market.
Capgemini had offered USD 48 for every I-Gate share as part of the definitive merger agreement.
The merged group would have around 1,90,000 employees and an operating margin of 10 per cent, Capgemini said.
The statement released today said pursuant to the merger agreement, I-Gate has now become a indirect wholly owned subsidiary of the Capgemini.
