Atos Buys Syntel in $3.4 Billion U.S. Push for Amex, FedEx

Atos Buys Syntel in $3.4 Billion U.S. Push for Amex, FedEx
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Atos agreed to buy  Syntel in a $3.4 billion cash deal to help it get better access to U.S. financial customers like American Express and State Street, according to Bloomberg. At $41 a share, the transaction is also a way for  acquisitive French computer-services provider Atos to recover from a rebuffed bid 8 months ago for Gemalto.

“We’ve just acquired a massive booster to our U.S. business and to our digital business,“ Atos Finance Chief Elie Girard said in a call with reporters. As a French company reinforcing its presence in the U.S., “we’re absolutely not worried about trade, our industry is not on the radar as a target of trade wars,“ he said.

Atos on Monday reported earnings that showed revenue and operating profitability fell in North America in the first half, though total sales grew 1.7 percent to 6 billion euros and the margin improved overall. The company confirmed its full-year targets.

Atos said it expects the deal to close by year-end, adding to earnings immediately and providing “double-digit accretion as early as 2019“ excluding transaction costs and goodwill. The boards of both companies approved the transaction on July 20 and Syntel shareholders holding 51 percent of the stock, including founders, pledged to vote in favor, according to a statement.