Atos SE of France has struck a $3.4 billion deal to buy Syntel Inc., a U.S.-based information-technology company, in a move that would give it access to some of the biggest U.S. financial-services companies.
Atos ATO, -0.32% said late Sunday that it plans to pay $41 a share in cash for Michigan-based Syntel. Shares in Syntel SYNT, +0.28% closed at $39.13 on Friday, having more than doubled over the past 12 months. Including assumed net debt, the deal values Syntel at $3.57 billion. The Wall Street Journal reported the deal earlier Sunday.
Atos Chief Executive Thierry Breton said Sunday that an incentive for a deal was Syntel’s strong know-how in digital fields, including cloud services, social media, mobile, analytics and automation. All are increasingly important areas for companies’ IT operations.
The acquisition would also boost Atos’s presence in North America, where the company’s revenue fell unexpectedly in the first three months of the year. In particular, Syntel has strong relationships with financial-services firms, as well as companies in the health-care and retail sectors. American Express AXP, -0.02% , State Street Bank STT, -7.41% and FedEx Corp. FDX, -0.68% were Syntel’s three largest customers in 2017, accounting for about 45% of the company’s annual revenue. Its 10 biggest customers generated 69% of its total revenue last year.
An expanded version of this report appears on WSJ.com.
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