Vertical markets, Enterprise, Mergers and Acquisitions, Channel technologies, IT management, Mergers and Acquisitions, Content, Channel technologies

Capgemini Acquires Altran: A Closer Look

Global IT services company Capgemini is acquiring fellow Paris-based company Altran Technologies, an engineering and R&D services firm for 3.6 billion euros ($4.1 billion).

The deal comes as Capgemini looks to maintain its position as a major IT consultancy even as the industry consolidates around it, pitting it against competitors like Accenture who has been growing sales from various digital projects.

The two publically traded companies will form a new entity that aims to become a major player in the Indian and Eastern European market, the company said.

While the deal still needs to pass certain regulatory hurdles, the company’s CEO, Paul Hermelin, isn’t expecting any antitrust issues, telling Bloomberg TV that “the market is very fragmented.”

Once combined, the company will be able to assist clients in areas like cloud computing, IoT (internet of things), 5G, and AI software, Hermelin said in a statement.

Hermelin added:

“This proposed combination enables Capgemini to take the lead in a very promising market segment—what we call ‘Intelligent Industry’ or the digital transformation of industrial and tech companies. The complementarity and power of our combined business and technological expertise are truly outstanding assets.”

Dominique Cerutti, Chairman and Chief Executive Officer of the Altran Group, added:

“While technological disruptions and the digitalization of industries are accelerating, Altran has developed new service models and strengthened its leadership with a high value-added offer for its customers’ Engineering and R&D activities. In an industry that is consolidating rapidly there is no doubt that Capgemini is the ideal partner to build together a world leader in digital transformation. This transaction will create value for our customers, and is an outstanding opportunity to showcase the talent of our teams.”

Altran brings with it a portfolio of high-profile clients, extensive sector expertise, and in-depth understanding of industrial business processes and operational technologies. As a result, the combined group will benefit from increased access to key decision-makers from key accounts in dynamic industries like Aerospace, Automotive, Life Sciences, and Telecommunications, the firm said.

The combination of the two companies is expected to generate revenues of 17 billion euros and more than 250,000 employees. The new entity will leverage its unique positioning in particularly promising segments, the company asserted.