Cap Gemini to buy U.S.-based IGATE in $4 billion deal

PARIS (Reuters) - French IT services company Cap Gemini said on Monday it planned to buy U.S.-based IGATE Corp for $4 billion cash in a deal that will make North America its biggest market.

IGATE, a technology and services company headquartered in New Jersey with 2014 revenues of $1.3 billion, double-digit growth, and a 19 percent operating margin, is to be acquired for $48 a share, Cap Gemini said. IGATE's shares closed on NASDAQ on Friday at $45.85.

The deal will be financed through a combination of Cap Gemini's own cash, debt and an equity portion that will not exceed a 6 percent dilution of the French firm's share capital.

 

Cap Gemini said it had the backing of shareholders representing 54 percent of IGATE's share capital for the deal, and that it would enhance earnings immediately.

After completion, North America will represent 30 percent of the combined 2015 revenue of 12.5 billion euros ($13.58 billion), raising Cap Gemini's revenue in the region by about a third.

($1 = 0.9206 euros)

(Reporting by Andrew Callus; Editing by Muralikumar Anantharaman and Miral Fahmy)