Capgemini clinches iGate for US boost

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French IT services company Capgemini has agreed to acquire US technology and services company iGate Corporation from private equity firm Apax Partners for US$4 billion.

The proposed acquisition will strengthen Capgemini’s key businesses in application and infrastructure services as well as business process outsourcing and engineering services. The deal fulfils one of Capgemini’s primary strategies of expanding its presence in the North American market. The combination of the two companies increases the group’s revenues in the region by 33% to an estimated US$4 billion, making North America its biggest market, with approximately 30% of the pro forma combined revenues in 2015. Around 50,000 employees will serve Capgemini’s North American clients.

The combined entity will have revenues of approximately €12.5 billion (US$13.9 billion) in 2015 and around 190,000 employees.

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