CCI approves acquisition of IGATE Corp by Capgemini

NEW DELHI: French IT services company Capgemini's USD 4 billion deal to acquire IGATE Corp has got the approval from the Competition Commission.

The fair trade regulator, which keeps a tab on unfair business practices across sectors, has approved the acquisition as the deal may not have an adverse impact on competition in the country.

" CCI (Competition Commission of India) approves the acquisition of iGate by Capgemini," it said in a tweet.

Capgemini, in April, said that it will buy IGATE Corp -- a US-based company with a large presence in India -- for USD 4 billion in cash to create an entity with a combined revenue of USD 14 billion to take on rivals like IBM.

The acquisition will give Capgemini access to IGATE's customers like General Electric and Royal Bank of Canada and boost its US-generated business to 30 per cent of its total revenue and make North America its largest market.

Under the proposed deal, Capgemini will offer USD 48 for every IGATE share as part of the definitive merger agreement.

Capgemini and IGATE would together have combined annual revenue of 12.5 billion euros (USD 14 billion) this year.

The merged group would have around 1,90,000 employees and an operating margin of 10 per cent, Capgemini said.