July 24 201 France headquartered global leader in digital transformation, Atos, has announced its agreement with Indian entrepreneurs -owned, US based leading provider of integrated information technology and knowledge process services,Syntel for .$3.4 billion.
This transaction is a major step in the strategy of Atos to reach a global scale and significantly expand in both Digital services and Business & Platform Solutions. The two organizations are fully complementary in their customer base, geographies, and services. Syntel will enhance Atos’s Digital Transformation Factory thanks to a powerful suite of digital and proprietary solutions recognized by leading industry analysts as being the most advanced in Cloud, Social Network, Mobile, Analytics, Cloud and IoT. Syntel CEO Rakesh Khanna will join Atos’ Executive Committee
Syntel generated $924 million revenue in 2017, of which 89% was in North America, with 25% operating margin. The Group employs 23,000 engineers in 30 countries, with over 18,000 staff based in India. All of Syntel’s management team is expected to join Atos.
Says Thierry Breton, Chairman and CEO of Atos: ”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."
Adds Bharat Desai, Co-Chairman and Co-founder of Syntel: "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."
The Times of India reports today: Indian-American couple Bharat Desai and Neerja Sethi who sold their IT services company Syntel to French IT major Atos together held 57% stake in the company, which means they receive nearly $2 billion from the deal.