The acquisition bolsters Capgemini’s exposure in the financial verticals—where IGATE is particularly strong—as well as manufacturing, retail, and healthcare.
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.
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.
There’s a disproportionate effect clause in the iGATE-Capgemini merger agreement that covers what cannot have a disproportionate effect on 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.
Capgemini is one of the world’s foremost providers of consulting, technology, outsourcing services, and local professional services.
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.