Atos to acquire Syntel

There will be cross-selling opportunities at both the European and US customer bases

Atos and Syntel have entered into a definitive merger agreement under which Atos will acquire Syntel for cash consideration of $3.4 billion, i.e., $41.0 per share, representing 14 percent premium over the last 30 trading days volume weighted average share price of Syntel.

Syntel brings a powerful suite of digital and proprietary solutions recognized by top analysts as being among the most advanced: cloud, social media, mobile, analytics, IoT, and automation at 40 percent of Syntel’s revenue.

Syntel will significantly strengthen the Group’s Business & Platform Solutions Division worldwide with best-in-class delivery platform generating among the highest margins of the industry.

This transaction expands Atos’s capabilities in North America to provide end-to-end services to US customers. It also strongly reinforces its Banking, Finance & Insurance verticals.

The $120 million of annual cost synergies are expected by 2021 from G&A optimization taking advantage of the combined scale as well as the alignment of KPIs in Business & Platform Solutions.

A compelling match between the two companies supporting multiple opportunities for revenue synergies, expected to reach $250 million by 2021, through cross-selling opportunities at both the European and US customer bases.

The transaction is planned to close by year-end. Both companies’ Boards of Directors have unanimously approved the transaction. Written voting agreements with Syntel shareholders, including founders, to vote in favor of the transaction represent 51 percent of the outstanding shares.


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