Consulting and IT services provider Capgemini has entered into exclusive negotiations to acquire Altran, a consultancy specialising in engineering and R&D services. Under the friendly takeover deal, Capgemini will pay EUR 14.00 per Altran share, for a total cash consideration of EUR 3.6 billion excluding net debt of EUR 1.4 billion. The two companies, both headquartered in France, said that their merger will create a group with annual revenues of EUR 17 billion and more than 250,000 employees, in a sector that is consolidating rapidly.
Capgemini sees the acquisition as an important step towards building its leadership in what it calls the ‘Intelligent Industry’, or the digital transformation of industrial and tech companies, in areas such as aerospace, automotive, life sciences and telecoms. It said that this market offers double-digit growth potential being at the crossroads of two very dynamic sectors – engineering/R&D services for industrial players and IT services for operations. It also highlighted that the deal with Altran would help the group build critical mass particularly in India and eastern Europe, where it aims to become a major player.
The completion of the acquisition is expected by the end of the year, subject to customary regulatory approvals. Ahead of the public offer launch, Capgemini has signed a definitive agreement to acquire an 11 percent stake in Altran from a group of investors led by private equity firm Apax Partners.
