New Delhi: French IT services company Cap Gemini S.A’s $4 billion deal to acquire iGate, Inc., has got the approval from the Competition Commission of India (CCI).

The fair trade regulator, which keeps a tab on unfair business practices across sectors, has approved the acquisition as the deal may not have an adverse impact on competition in the country. “CCI (Competition Commission of India) approves the acquisition of iGate by Cap Gemini," it said in a tweet.

Cap Gemini said in April that it will buy iGate, a US-based company with a large presence in India, for 4 billion in cash to create an entity with a combined revenue of 14 billion to take on rivals like International Business Machines (IBM).

The acquisition will give Cap Gemini access to iGate’s customers like General Electric International Inc and Royal Bank of Canada and boost its US generated business to 30% of its total revenue and make North America its largest market. Under the proposed deal, Cap Gemini will offer $48 for every iGate share as part of the definitive merger agreement.

Cap Gemini and iGate would together have combined annual revenue of 12.5 billion euros ($14 billion) this year. The merged group would have around 1,90,000 employees and an operating margin of 10%, Cap Gemini said.

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