We are seeing more merger and acquisition activity among technology services companies as European companies are seeking to expand their presence in US markets. Just this week, another acquisition of a growing US-based technology company by a global technology services leader headquartered in France was announced.
On July 22, French multinational company Atos—a global leader in technology services and digital transformation—announced that it entered into a definitive merger agreement with US-based Syntel. The acquisition, subject to regulatory approval, is scheduled to close by the end of 2018. Syntel, based in Michigan, is a global IT company specializing in cloud, mobile, analytics, and automation services. The purchase of Syntel is intended to strengthen Atos’s presence in the banking, financial services, and insurance (BFSI) industries, with Syntel generating a substantial portion of its revenue from BFSI and large global banks. The acquisition also will increase the North America presence of Atos and expand Atos’s workforce in India, adding 23,000 employees—18,000 of which are based in India—to Atos’s current headcount of about 97,000.