Magazine article American Banker

Capgemini of France Buying Outsourcer in India for $1.25B

Magazine article American Banker

Capgemini of France Buying Outsourcer in India for $1.25B

Article excerpt

Capgemini Service SAS of Paris, seeking to expand in the financial services market as well as in India, has agreed to buy the outsourcing provider Kanbay International Inc.

The technology and consulting company announced the deal Thursday and said it would buy all outstanding shares of Kanbay for $1.25 billion, or $29 per share. That is a 15.9% premium over the seller's closing price Wednesday and a 28.3% premium on its average price for the past month.

The companies expect to close the deal next quarter. Kanbay is based in Rosemont, Ill., but most of its operations are in India.

Salil Parekh, Capgemini's North American chief executive, said in an interview that the move "deepens our financial services expertise by providing some very point solutions in the card space, in the processing space, that we did not have."

It also "expands our scale drastically offshore." The acquisition would nearly double Capgemini's head count in India, to 12,000.

Capgemini provides consulting and outsourcing services to the insurance, retail banking, and capital markets industries. Mr. Parekh said that Kanbay's processing platform could "be expanded across our base. …

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