US/France: Syntel announces US$3.6b Atos merger

Syntel, a global provider of integrated information technology and knowledge process services, announced on Sunday, July 22, that it has entered into a definitive merger agreement with Atos under which Atos will acquire all outstanding shares of Syntel for US$41.00 per share in an all-cash transaction valued at approximately US$3.57 billion, including Syntel’s net debt. The transaction was unanimously approved by the full Board of Directors of Syntel based on the unanimous recommendation of a Special Committee of the Board.

Atos is about five times the size of Syntel, with a market value of roughly US$17 billion. The companies serve some of the same industries, including life sciences, financial services, manufacturing, retail and telecommunications, and both target markets in North America and Europe.

Completion of this transaction is subject to regulatory approvals, approval of Syntel’s shareholders, and other customary closing conditions. Completion of this transaction will not be subject to any financing condition. In connection with the merger agreement, Syntel’s founders and some of their affiliated entities, who collectively own approximately 51% of the outstanding Syntel shares, entered into an agreement with Atos to vote their shares in favor of the merger agreement, subject to their right to terminate their obligations in the event the Syntel Board changes its recommendation to shareholders or if the definitive agreement is terminated. The parties expect to close the transaction during the second half of 2018.

Full Content: The Wall Street Journal

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