The French group Atos has agreed upon buying the US-based IT company Syntel for $3.4 billion to increase its presence in North America. The French IT services giant will be buying Syntel $41 a share in a cash deal to finish the buyout.
With this acquisition, the French IT company will be able to access the large US customer base and also those of American Express and State Street Corp which were Syntel’s main customers. “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 Officer Thierry Breton of Atos Group.
The buyout will be done under debt underwritten by JP Morgan Chase & Co and BNP Paribas by the end of the year. 89% of the $972 million generated in revenues by Syntel was from its North American operations last year. Syntel’s Co-founder Bharat Desai welcomed the move saying that it “is a very exciting development for Syntel.” Syntel which was established 38 years ago will be able to maximize shareholder value and help the French company achieve its American dream with this deal completion.