Atos: finalises acquisition of Syntel

(CercleFinance.com) - On Tuesday evening Atos announced that it has finalised the acquisition of Syntel, an integrated information technology and data processing services company that is based in Michigan in the US.


This company, which thus becomes a fully-owned subsidiary of Atos, generated a revenues of 924 million dollars in 2017, of which the great majority (89%) is in North America, with an operating margin of 25%, and about 40% of its business in digital, automation and robotisation.

"The purchase price of $3.4 billion and the repayment of Syntel's outstanding debt for $0.3 billion were financed through debt fully underwritten by BNP Paribas and J.P. Morgan Securities PLC, whose syndication closed largely oversubscribed with a group of 25 banks. As a result of the acquisition, Syntel shares will cease trading, and will be delisted from the NASDAQ," Atos said.

Atos expects that this deal will enhance earnings immediately, with a double-digit improvement in 2019 EPS, excluding the impact related to the allocation of the acquisition price, the acquisition costs and the generation of synergies.


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