Smaller Rival Altran Merges with Capgemini in 3.6 Billion Euros Deal
When it comes to the biggest companies in the world of consulting and technology, the idea of acquisition in order to keep growing is a well-known strategy and that has been even more prevalent in recent years. In a new development, French consultancy and information technology giant Capgemini has struck a deal worth 3.6 billion Euros that will see it acquire its smaller rival Altran. Capgemini bought Altran at 14 Euros a share. Both companies made the official announcement that the deal has been completed. The deal was announced after the markets had closed. The merger will create a behemoth that will have over 250,000 employees and will generate a staggering 17 billion Euros in revenues.
Over the years, Capgemini has been primarily known for its work in consulting, information technology services, and assorted digital services, but the acquisition of Altran will help it in expanding into new avenues. Now, the company will be able to work in research and development as well as engineering and needless to say, those are highly lucrative businesses to get into. According to Capgemini, the engineering and research and development industries are all set to grow at an impressive 9% annually, which is why this deal is a significant one for the company’s future. However, it is important to note that although the deal has been approved by the powers that be at the two companies, it will need to be approved by the relevant competition regulator.
According to Capgemini Chief Executive Officer and Chairman Paul Harmelin, this deal will allow it to help more tech and industrial companies with their digital transformation needs. He went on to state,
By joining forces, we are positioning ourselves as a clear strategic partner to assist our clients in taking full advantage of the revolution created by the developments of the cloud, edge computing, internet of things, artificial intelligence and 5G.
Needless to say, it is a huge deal for Capgemini, and it remains to be seen how the company leverages this new found clout.
