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Capgemini raising capital for iGate deal

June 10, 2015

Paris-based IT services firm Capgemini Group is launching a €500 million (US$563.60 million) capital increase to help fund its planned acquisition of iGate Corp. (NASD: IGTE), a New Jersey-based technology services company. Capgemini’s board of directors on June 8 authorized the transaction, which consists of a private placement exclusively offered to institutional investors.

Capgemini in April entered into a definitive merger agreement to acquire iGate for a cash consideration of $48 per share. The transaction will amount to $4.0 billion and is expected to close in the second half of this year.

The newly launched capital increase aims primarily at early refinancing of part of the $3.8 billion bridge loan for the acquisition. Capgemini will issue up to 7 million new shares, representing about 4.2% of its capital.

Capgemini provides consulting, technology and outsourcing services and has more than 145,000 people in more than 40 countries. The Group reported 2014 global revenues of €10.573 billion.