French group Atos has officialized the acquisition of Syntel, the US application service specialist. The acquisition climbed to $3.4 billion. The synergy between the two, location-wise, enables Atos to continue its global expansion.
Global partner of the Olympic Games, a European leader in cloud technology, cyber-security, supercomputing or online payment. The French group Atos is one of the country’s technological flagships. It wants to accelerate its expansion in North America, especially the US market.
Syntel: software solutions specialist, especially for banks and finance
To achieve this, the group has made a big acquisition: Atos has bought Syntel for $3.4 billion, the American application service giant. The acquisition was unanimously approved by both Executive Boards. The offer represents a 14% bonus compared to the adjusted stock’s rate over 30 days.
Syntel is well present on software solutions for the cloud, social networks, mobile phones, IOT, and automatization. Its main clients are American Express, Starte Street Bank or FedEx which tells a lot about its position in the finance, banking and insurance sectors.
A “very strong synergy” between Atos, the European open to the world and the American Syntel
“The very strong synergy between Atos and Syntel in terms of services, clients, and locations will enable us to boost our presence in North America. It will also accelerate the digital transformation of Atos’ clients worldwide” said Thierry Breton, CEO of Atos.
Indeed, the historical location for Atos remains the EU and Syntel makes most of its revenue in North America. This helps speed up the deployment of the French group across the Pond.
The American group has 23 000 employees in 30 countries but mainly in India where they have 18 000 employees. According to Atos, the synergy between the two groups could generate as much as $250 million by 2021.