French digital transformation leader Atos has signed an agreement with Syntel, a leading global provider of integrated information technology and knowledge process services for aggregate consideration of $3.4 billion

On July 20, 2018, Syntel’s Board of Directors uninamously approved the transaction based on the recommendation of a special committee of the Syntel Board.

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.

The transaction is structured as a one-step cash merger between Syntel and Atos requiring above 50% of Syntel outstanding share capital to execute the merger. In particular, the highly complementary portfolio, customer base, and geographic footprint of the combination between Atos and Syntel will significantly enhance Atos’ presence in North America and accelerate the digital transformation of Atos’s customers worldwide.

According to Atos, 23,000 Syntel engineers will be absorbed by Atos as part of this deal, in addition to some core management members.

Bharat Desai, co-chairman and co-founder of Syntel, said: “This is a very exciting development for Syntel. The Syntel board is committed to maximising shareholder value and believes that the agreement with Atos achieves that objective and delivers a win-win proposition to our customers and employees.