A powerful combination for Atos by acquiring a highly complementary portfolio, customer base and geographic footprint with 23,000 new joiners highly skilled in digital services.
Atos has announced its agreement with Syntel for aggregate consideration of c.$3.4 billion or $41.0 per Syntel share.
The transaction represents c. 14% premium over the 30 trading days volume weighted average share price. The transaction is structured as a one-step cash merger between Syntel and Atos requiring above 50% of Syntel outstanding share capital to execute the merger. On July 20, 2018, the Board of Directors of Syntel uninamously approved the transaction based on the unanimous recommendation of a special committee of the Syntel Board. Written voting agreements with Syntel shareholders, including founders, to vote in favor of the transaction represent 51% of the outstanding shares.
The Board of Directors of Atos meeting held on July 20, 2018 also expressed its full and unanimous support for the transaction.
Thierry Breton, Chairman and CEO of Atos stated: “I am extremely glad to report such a vital breakthrough in Atos’ administration improvement with the obtaining of Syntel, set up 38 years back, that flawlessly fits our vital needs. It speaks to a transformational step for our Business and Platform Solutions Division as it will essentially improve its development and profitability profile through a broadened advanced services offering, front line India-based delivery platforms, and income and cost cooperative energies.
Specifically, the exceedingly complementary portfolio, customer base, and geographic impression of the combination amongst Atos and Syntel will fundamentally upgrade our essence in North America and quicken the computerized transformation of Atos’ customers around the world.
I am anticipating welcoming the 23,000 Syntel engineers and their exceptionally solid administration to continue conveying together the most noteworthy incentive to our customers and shareholders.”
Bharat Desai, Co-Chairman and Co-founder of Syntel, stated: “This is an extremely energizing improvement for Syntel. The Syntel board is committed to augmenting investor esteem and trusts that the concurrence with Atos accomplishes that target and conveys a win-win suggestion to our customers and workers. Our concentration at Syntel is to enable customers to transform and prevail in the computerized economy. Since its establishing, our “Customer for Life” ethos has guided our interests in high-affect, space drove services and protected innovation. I am appreciative for the trust and confidence of our customers and the enthusiasm, commitment and inventive soul of our workers. Together they have empowered Syntel to accomplish awesome statures. I am confident that this combination will convey huge incentive to all partners.”
Every one of the Atos and Syntel Board of Directors has collectively endorsed the transaction, on account of Syntel, in light of the consistent recommendation of an exceptional committee of the Syntel Board. Composed voting concurrences with Syntel shareholders, including founders, to vote for the transaction speak to 51% of the extraordinary offers. The transaction is liable to standard antitrust and administrative endorsements. Material works council strategies will be taken after. The transaction is required to near to year-end 2018.
