Atos completes Acquisition of US-based Syntel

Atos, a global leader in digital transformation, has completed the acquisition of Syntel Inc., a leading global provider of integrated information technology and knowledge process services headquartered in Michigan, with $ 924 million revenue in 2017 of which 89 percent is in North America, 25 perrcent operating margin, and 40 percent of its activities in digital, automation, and robotization.

Syntel offers its customers high value-added digital services in several specific verticals such as Banking and Financial Services, Healthcare, Retail and Insurance.

Commenting on the finalization of the deal, Thierry Breton, Atos chairman and CEO said: “Today marks a new major step in the development of the Group, as we welcome more than 23,000 Syntel employees to Atos. With this transaction, we take a new dimension to accelerate the digital transformation of our customers worldwide, while strongly reinforcing our Business and Platform Solutions activities with new clients in North America and a delivery platform from India with a consistent and competitive size to support our customers in their digitalization journeys.

"We worked extensively to be ready from day one post-closing and to ensure continued delivery of services to our clients while at the same time leveraging the combined strengths of the two Groups for profitable growth. In that regards, Syntel will operate as a dedicated unit named Atos Syntel within our Business & Platform Solutions Division.”

Pursuant to the terms of the Merger Agreement, announced on July 22, 2018 and approved by Syntel’s shareholders on October 1, 2018, Syntel today becomes a wholly owned subsidiary of Atos. 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.

The transaction is expected to be EPS accretive immediately with double digit accretion as early as 2019 excluding the impact of PPA and transaction and implementation costs.

Syntel will be consolidated into the Group financial statements as of November 1, 2018.