French technology services company Atos has agreed to buy Michigan, US-based information technology firm Syntel for $3.4 billion, or $41 per Syntel share, in an all-cash transaction.
The Bezons, France-headquartered Atos in a statement late on Sunday said this transaction was in line with the company’s strategy to reach a global scale and significantly expand in both digital services and business and platform solutions.
“It represents a transformational step for our business and platform solutions division as it will significantly enhance its growth and profitability profile through an extended digital services offering, cutting-edge India-based delivery platforms, as well as revenue and cost synergies,” said Thierry Breton, Chairman and CEO of Atos.
“In particular, the highly complementary portfolio, customer base, and geographic footprint of the combination between Atos and Syntel will significantly enhance our presence in North America and accelerate the digital transformation of Atos’s customers worldwide,” Breton, added.
Syntel generated $924 million revenue in 2017, of which 89 per cent was in North America, with 25 per cent operating margin.