Tuesday 25 June 2019 10:43 am

Capgemini shares rise on €3.6bn takeover of rival Altran


Reporter covering media, telecoms and marketing. Get in touch at james.warrington@cityam.com

Reporter covering media, telecoms and marketing. Get in touch at james.warrington@cityam.com

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Shares in software and consultancy firm Capgemini jumped seven per cent this morning following the announcement of its €3.6bn (£3.2bn) takeover of smaller rival Altran.

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The French digital innovation giant said the merger will create a group with revenue of €17bn and more than 250,000 employees.

Capgemini said it hoped to tap into demand from its customers in a wide range of industries, including aerospace and telecoms.

Analysts at Deutsche Bank described the takeover, which was announced last night, as a “bold strategic move”.

Shares in Capgemini rose as much as seven per cent this morning, while Altran soared over 21 per cent.

Capgemini has made a cash offer of €14 per share, a 22 per cent premium on Altran’s closing price on Monday.

The Paris-headquartered company said it expects the deal to spark significant cost savings and add 25 per cent to its earnings per share by 2023.

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“We think the deal makes strategic sense, helping Capgemini to capitalise on the digital transformation of industrial companies,” wrote analysts at Credit Suisse.

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