What Kind of Return Will the IGATE–Capgemini Spread Yield?
To turn this into a reasonable return, you’re looking at a July close. This isn’t outside the realm of possibility, but it could be tough, especially since there’s a shareholder vote.
Rationale for Capgemini’s Acquisition of IGATE
The acquisition bolsters Capgemini’s exposure in the financial verticals—where IGATE is particularly strong—as well as manufacturing, retail, and healthcare.
Basics of the IGATE–Capgemini Transaction
The IGATE–Capgemini merger is a friendly cash merger that will require an IGATE shareholder vote. Capgemini warrants that it will have the funds prior to closing.
Tight Spread on the IGATE Merger with Capgemini
The IGATE (IGTE)–Cap Gemini (CAPMF) merger is a cash deal, with a shareholder vote and a deal with the three biggest holders. The companies have 30 days from the date of the merger agreement to consent.
Parsing the iGATE-Capgemini Material Adverse Effect Clause, Part 2
There’s a disproportionate effect clause in the iGATE-Capgemini merger agreement that covers what cannot have a disproportionate effect on iGATE.
The Basics of iGATE
iGATE (IGTE) is a global leader in providing integrated technology and operations-based information technology solutions. Its two biggest customers are GE and Royal Bank of Canada.
The Basics of Capgemini
Capgemini is one of the world’s foremost providers of consulting, technology, outsourcing services, and local professional services.
Why was high yield bond activity little changed last week?
Last week, issuance in the high yield bond market was moderate, at $5.40 billion. This was 400 million less than the previous week’s issuance of $5.80 billion.