PARIS (dpa-AFX) - Capgemini (CGEMY.PK, CAPP) said that it agreed to buy engineering and digital services company Altran Technologies for total cash consideration of 3.6 billion euros, excluding net financial debt of 1.4 billion euros.
Capgemini said it would offer 14.00 euros per Altran share in cash, representing a 33% premium over the 3-month volume weighted average price. The deal is expected to complete by the end of 2019.
Capgemini anticipates the transaction will be accretive to its normalized earnings per share by more than 15%, before synergies from the combination. In 2023, accretion is expected to exceed 25% post synergies.
The agreement is unanimously recommended and approved by the Boards of Directors of Capgemini and Altran. In addition, Capgemini has signed a definitive agreement to acquire shares representing 11% of Altran capital from a group of shareholders led by Apax Partners.
Capgemini expects cost and operating model synergies to reach an annual pre-tax run rate between 70 million euros and 100 million euros in 3 years. commercial synergies should generate between 200 million euros and 350 million euros in additional annual revenues, from cross-selling and the development of innovative sectorial offers.
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