Tuesday 25 June 2019 10:43 am

Capgemini shares rise on €3.6bn takeover of rival Altran

Employment case against Capgemini dismissed over conduct of the employee

Shares in software and consultancy firm Capgemini jumped seven per cent this morning following the announcement of its €3.6bn (£3.2bn) takeover of smaller rival Altran.

The French digital innovation giant said the merger will create a group with revenue of €17bn and more than 250,000 employees.

Capgemini said it hoped to tap into demand from its customers in a wide range of industries, including aerospace and telecoms.

Analysts at Deutsche Bank described the takeover, which was announced last night, as a “bold strategic move”.

Shares in Capgemini rose as much as seven per cent this morning, while Altran soared over 21 per cent.

Capgemini has made a cash offer of €14 per share, a 22 per cent premium on Altran’s closing price on Monday.

The Paris-headquartered company said it expects the deal to spark significant cost savings and add 25 per cent to its earnings per share by 2023.

“We think the deal makes strategic sense, helping Capgemini to capitalise on the digital transformation of industrial companies,” wrote analysts at Credit Suisse.