Atos strengthens multi-billion takeover in the United States

The French IT service provider Atos buys in the United States. For $ 3.4 billion, Atos is taking over the American IT service provider Syntel, as both companies announced on Sunday. Atos pays $ 41 per share, up nearly 5% on Syntel's closing price on Friday.

"We have just received a huge boost to our activities in the United States," says Bloomberg, Atos' CFO, Elie Girard. The purchase price is 14.7 times the earnings of Syntel before interest and taxes in the last twelve months. Atos expects the transaction to be completed by the end of the year, with an immediate positive impact on the results. According to the announcement, Atos aims to save $ 120 million a year through synergies. Syntel will become one in the future

billion US dollars for sales of Atos.

The agreement still needs to be approved by the relevant authorities. The executives of both companies accepted the transaction on July 20 and Syntel shareholders, including the founders, pledged to vote for the transaction, according to Bloomberg.

The Michigan Company was founded in 1980 and employs 23,000 people, including 18,000 in India. Syntel specializes in IT services and business solutions in the cloud, mobile and IoT sectors. Syntel generates the majority of its sales in the United States. Last year, sales were $ 923.8 million. According to "Bloomberg", 45% of them come from three clients: American Express, State Street Bank and Fedex. (Kjo)