France's Capgemini to buy US rival iGate for $4 billion

AP News
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Posted: Apr 27, 2015 9:22 AM

NEW YORK (AP) — French technology company Capgemini is paying about $4 billion to buy U.S. rival iGate Corp. and expand its presence in North America.

Capgemini, based in Paris, provides consulting, technology and outsourcing services to companies around the world. Its clients are mainly in the retail, manufacturing and health care industries.

IGate offers similar information technology services to financial services companies and other industries. Capgemini says it will gain new clients with the deal, including General Electric Co. and the Royal Bank of Canada.

Under the deal, which is expected to close in the second half of the year, Capgemini will pay $48 per share for iGate. That's a 5 percent premium from the stock's close on Friday of $45.85.

iGate shares rose about 3.4 percent to $47.40 before the stock market open on Monday.