Atos set to complete $3.4bn acquisition of Syntel
Atos has announced the major acquisition of US-based technology services company Syntel for $3.4bn.
Revealed in a statement on Sunday, the merger will see Atos significantly grow its business in North America and expand in both Digital services and Business & Platform Solutions.
Syntel, which generated close to $1bn of revenue 2017, 89% of which was in the United States, is widely-recognised as having one of the most advanced suites of digital solutions, especially in the areas of cloud, social network, mobile, analytics and IoT.
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Through the acquisition, Atos - which earned nearly €13bn in 2017 alone - will be able to make specific ground in the business verticals of banking and financial services, healthcare, retail, logistics, manufacturing and insurance.
"I am very proud to announce such an important milestone in Atos’ leadership development," said Thierry Breton, Chairman and CEO of Atos. "It represents a transformational step for our Business & Platform Solutions Division as it will significantly enhance its growth and profitability profile through an extended digital services offering, cutting-edge India-based delivery platforms, as well as revenue and cost synergies."
Bharat Desai, co-chairman and co-founder of Syntel, said: "This 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."
Syntel's entire management team is expected to move to Atos, with Syntel CEO Rakesh Khanna to take a seat on its Executive Committee. Both boards have unanimously accepted the merger, with the transaction expected to complete by the end of the year.