World Economy

French Firm to Buy IGATE

French Firm to Buy IGATEFrench Firm to Buy IGATE

French IT services company Cap Gemini said on Monday it planned to buy US-based IGATE Corp for $4 billion cash in a deal that will make North America its biggest market, Reuters reported. IGATE, a technology and services company headquartered in New Jersey with 2014 revenues of $1.3b, double-digit growth, and a 19% 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 65% dilution of the French firm’s share capital.