Capgemini shares rise on €3.6bn takeover of rival Altran
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.
Read more: AI software market posts huge growth amid digital transformation boom
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.
Read more: Salesforce to buy Tableau Software in $15.7bn deal
“We think the deal makes strategic sense, helping Capgemini to capitalise on the digital transformation of industrial companies,” wrote analysts at Credit Suisse.