Capgemini to expand in North America with $4B acquisition of iGate
French IT services company Capgemini is to acquire iGate in the U.S. for $4 billion, in a bid to expand its presence in the North American market.
The deal will boost Capgemini’s revenue from North America by 33 percent to $4 billion, making the region the first to account for 30 percent of its revenue.
The iGate acquisition also brings to Capgemini additional expertise in application and infrastructure services, business process outsourcing and engineering services. Capgemini also gets iGate’s clients, including key customers such as General Electric and Royal Bank of Canada, to whom it can now cross-sell its own services.
Capgemini now has clients like GE, which eluded it for two decades, more staff for global delivery of services, and the opportunity to offer high-end services to iGate clients, said Sudin Apte, CEO and research director of analyst firm Offshore Insights in a note.
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