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Telecommunications Capgemini to buy Kanbay for $US1.25 billion
Telecommunications Capgemini to buy Kanbay for $US1.25 billion | Capgemini to buy Kanbay for $US1.25 billion |
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| by Stuart Corner | |
| Friday, 27 October 2006 | |
  
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The two companies have hailed the deal as "a landmark transaction in the global IT services industry [that] can fundamentally transform the professional services industry by enabling efficient global services delivery via an integrated single point solution delivered in a seamless fashion resulting in a lower total cost of ownership for the client." Capgemini says the deal will significantly increase its presence in India where the combined company would have 12,000 employees, 16 percent of its total, and position it as a leader in the financial services sector - which it claims accounts for 22 percent of the global IT market. Raymond J Spencer, chairman and CEO of Kanbay, will join the top management of Capgemini. Capgemini CEO, Paul Hermelin, said: "The acquisition of Kanbay, a world-class IT services provider, supports our growth strategy and significantly enhances our global banking, financial services and insurance (BFSI) practice, particularly in North America and India, where Kanbay has over 5,000 associates. The acquisition also gives us valuable capabilities in Consumer and industrial products, telecommunications, media, life sciences and the travel & leisure verticals...It fits in perfectly with the Group's expansion program called I3 which focuses on three levers: industrialisation, intimacy with our clients and innovation." Capgemini says it has sufficient cash to fund the transaction but does not rule out raising up to 500 million euros in equity "to rebuild room for manoeuvre and participate to a possible further movement of consolidation."{moscomment} |
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