Syntel will bring c. $ 1 billion revenue with c. 24% operating margin strengthen worldwide Atos Digital solutions portfolio and business and significantly accelerate Atos’ development in North America
Atos announced its agreement with Syntel, a leading global provider of integrated information technology and knowledge process services, with respect to the acquisition by Atos of Syntel, for aggregate consideration of c.$3.4 billion or $41.0 per Syntel share.
The Board of Directors of Atos meeting held on July 20, 2018 also expressed its full and unanimous support for the transaction. Thierry Breton, Chairman and CEO of Atos said: ”I am very proud to announce such an important milestone in Atos’ leadership development with the acquisition of Syntel, a leading digital company, established 38 years ago, that perfectly fits our strategic priorities. It represents a transformational step for our Business & Platform Solutions Division as it will significantly enhance its growth and profitability profile through an extended digital services offering, cutting-edge India-based delivery platforms, as well as revenue and cost synergies.
In particular, the highly complementary portfolio, customer base, and geographic footprint of the combination between Atos and Syntel will significantly enhance our presence in North America and accelerate the digital transformation of Atos’s customers worldwide.
I am looking forward to welcoming the 23,000 Syntel engineers and their very strong management to continue delivering together the highest value to our clients and shareholders.”
Bharat Desai, Co-Chairman and Co-founder of Syntel, said: “This is a very exciting development for Syntel. The Syntel board is committed to maximizing shareholder value and believes that the agreement with Atos achieves that objective and delivers a win-win proposition to our customers and employees.
Our focus at Syntel is to help customers transform and succeed in the digital economy. Since its founding, our “Customer for Life” ethos has guided our investments in high-impact, domain-led services and intellectual property.
Syntel will bring strong capabilities thanks to its best-in-class delivery platform which generates, through its state of the art delivery process, among the the highest margins in the B&PS industry. Syntel offers secure and technically advanced offshore environment with world class-campuses in India, securing access to a talent pool of over 18,000 employees.
