Capgemini acquires Altran for €3.6 bn to support the digital transformation of industrial companies

By : |June 28, 2019 0

Capgemini announced acquisition of Altran Technologies through a friendly takeover bid at €14.00 per Altran share. The total cash consideration will amount to €3.6 billion, excluding net financial debt (c. €1.4 billion). The transaction will be accretive to Capgemini’s normalized EPS by more than 15%, before synergies from the combination.

In 2023, accretion is expected to exceed 25% post synergies. The agreement is unanimously recommended and approved by the Boards of Directors of Capgemini and Altran. In addition, Capgemini has signed a definitive agreement to acquire shares representing 11% of Altran capital from a group of shareholders led by Apax Partners.

Over the medium-term, Engineering and R&D (ER&D) services are anticipated to grow by around 9%5 annually. The new entity will be the world’s top player in ER&D by size (notably in the USA and in Europe), with unique sector expertise.

The combined scope of these Engineering and R&D services activities will represent annual revenues of approximately €3.4 billion6 and 54,000 professionals, including 21,000 in 5 Global Engineering Centers.

Building on its track record in industrialization and innovation, Capgemini will strengthen Altran’s deployment of its segmented model of services (high value-added services, traditional services, Industrialized Globalshore) to support customers throughout the entire life cycle of their products and services.

The Group expects accretion to normalized EPS, before synergies from the combination, of more than 15% in the first year after closing.

Capgemini has secured a bridge financing of €5.4 billion, covering the purchase of securities (€3.6 billion) as well as the gross debt (€1.8 billion).

It plans to refinance the bridge with available cash for €1 billion and the balance by debt issuance, primarily new bond issues.

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