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April 27, 2015

Capgemini opens the (I)GATE to North America market

Acquisition of IGATE will strengthen company's portfolio.

By James Nunns

Capgemini is acquiring IGATE in a deal worth $4 billion that will see North America become the largest region of the Group.

North America will now represent 30% of its estimated combined revenues of €12.5bn in 2015, as well as increasing its global reach and strength in the region’s market.

IGATE is a technology and services company which in 2014 posted revenues of $1.3 billion and has clients such as General Electric and the Royal Bank of Canada, which will help to strengthen Capgemini‘s portfolio.

Paul Hermelin, Chairman and CEO of Capgemini, said: "I am very pleased to announce a very important transaction in Capgemini’s history. IGATE is a leading company that perfectly fits our strategic ambition."

"It will give us a new status on the American market, and take further our industrialisation journey to offer ever more competitive services to our clients."

"This will also give to the Group’s Indian operations a new scale, allowing us to compete on par with the best US-based and Indian-based companies. I am glad to welcome new talents and leaders to our Group, who share our convictions and professional culture."

The deal, which has already been approved by the written consent of shareholders, will see Capgemini significantly expand its presence in the North America market.

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Ashok Trivedi, Co-Founder and Co-Chairman of IGATE said: "We are pleased to have found a great partner for the business and are confident that our employees and customers will benefit from the enhanced service offerings and resources available to them at Capgemini."

The integration of the two companies is expected to be in place within 3 months and full integration within 9.

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