Boosting its North American operations, French IT firm, Atos, is set to acquire USA based Syntel Inc. for $3.4 billion.
Atos provides IT services for sectors such as aerospace to retail while the acquisition of Syntel will strengthen its activities in sectors such as banking, finance and insurance.
According to Atos Chief Executive Thierry Breton:
“[The deal] will significantly enhance [the Business & Platform Solutions Division’s] growth and profitability profile through an extended digital services offering, cutting-edge India-based delivery platforms, as well as revenue and cost synergies.”
Syntel is a 38 year old company that employs 23,000 employees and it provides technology and IT services with a network of software development centers in India also.
However a Paris based trader pointed that the funding of the deal was a cause for concern:
“They are financing it through debt, which is becoming a source of concern among investors with rising interest rates and a high level of debt among companies.”
About Atos SE
Founded in 1982 Atos SE provides information technology services and solutions worldwide offering infrastructure and data management services, including cloud services and digital workplace services, business and platform solutions, big data, and cyber security products and services, as well as transactional services. Headquartered in France, Atos SE solutions include automated help and interaction centers, cloud and mobile solutions, unified communications and collaboration tools; Atos Codex, a suite of business-driven analytics and IOT solutions and services; business process outsourcing; business and platform solutions for mobile apps and devices, as well as SaaS integration; and computing platforms, security solutions. Atos SE employs 89989 employees worldwide.
Founded in 1980, Syntel is a company that provides digital transformation, information technology (IT), and knowledge process outsourcing (KPO) services worldwide. Headquartered in the US, Syntel operates through Banking and Financial Services; Healthcare and Life Sciences; Insurance; Manufacturing; and Retail, Logistics, and Telecom segments. Employing around 22114 employees worldwide, Syntel provides end-to-end, integrated application, and infrastructure management services; develops software applications; and offers legacy modernization services, such as software analysis, language conversion, reverse engineering, database migration, code optimization, cloud onboarding and migration, ecosystem migration, testing, and management.