French IT services group Atos to buy Syntel of US

French IT services group Atos said it has agreed to buy US information technology group Syntel in a move to significantly expand its presence in North America.

Atos said in a statement yesterday that it would acquire Syntel for $41 per share which amounts to around $3.4 billion.

"This transaction is a major step in the strategy of Atos to reach a global scale," the French company said.

"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," said chief executive Thierry Breton.

Syntel generated revenues of $924 million in 2017, of which 89 per cent was in North America.

Its operating margin -- underlying profits measured as a proportion of sales -- stood at 25 per cent.

It employs 23,000 engineers in 30 countries, with over 18,000 staff based in India.

Atos said the total cost benefits were estimated at $120 million per year.

"Strong portfolio and complementary customer base between the two companies will generate multiple cross-selling opportunities," it said.

Syntel's co-founder and co-chairman Bharat Desai said the tie-up "is a very exciting development for Syntel. The Syntel board is committed to maximizing shareholder value and believes that the agreement with Atos achieves that objective and delivers a win-win proposition to our customers and employees.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel