Syntel Inc., a global provider of integrated information technology and knowledge process services, July 22 announced that it has entered into a definitive merger agreement with Atos S.E. The owner of a couple of IT Services Company, Syntel has sold their company. Bharat Desai and his wife Neeraj Sethi sold it to French IT major Atos for $3.4 bn in an all-cash deal.
As part of the agreement, Atos will acquire all of Syntel’s outstanding shares at $41 per share in an all-cash transaction valued at approximately $3.57 billion, including Syntel’s net debt, Syntel said in a news release. The transaction was unanimously approved by the full Board of Directors of Syntel based on the unanimous recommendation of a Special Committee of the Board, it said.
Syntel declared, “it has entered into a definitive merger agreement with Atos S.E. under which Atos will acquire all outstanding shares of Syntel for $41.00 per share in an all-cash transaction valued at approximately $3.57 billion, including Syntel’s net debt. The deal was unanimously approved by the full Board of Directors of Syntel based on the unanimous recommendation of a Special Committee of the Board.”
“This is a very exciting development for Syntel. The Syntel board is committed to maximizing shareholder value and believes that the agreement with Atos achieves that objective and delivers a win-win proposition to our customers and employees,” Syntel co-chair Bharat Desai said in a statement. “Our focus at Syntel is to help customers transform and succeed in the digital economy. Since its founding, our ‘Customer for Life’ ethos has guided our investments in high-impact, domain-led services and intellectual property,” the Indian American entrepreneur said.
“I am grateful for the trust and confidence of our customers and the passion, commitment and innovative spirit of our employees.” Desai added. “Together they have enabled Syntel to achieve great heights. I am confident that this combination will deliver significant value to all stakeholders.”
Completion of this transaction is subject to regulatory approvals, approval of Syntel’s shareholders and other customary closing conditions. The deal is expected to close later this year.
Earlier this month, Neerja Sethi made Forbes’2018 “America’s Richest Self-Made Women” list. Sethi, the vice president of Syntel, co-founded the company with her husband Bharat Desai in 1980 in their Troy, Mich., apartment.
The 63-year-old executive who resides in Fisher Island, Fla., has a net worth of $1 billion. She started out with an initial investment of a mere $2,000 which resulted in first-year sales of $30,000.
In 2017, Syntel, which now employs roughly 23,000 individuals globally – 80 percent of whom are in India – made $924 million in revenues. (See India-West story here.)
And earlier this year, Bharat Desai was named among the ‘2018 World’s Billionaires’ by Forbes. He made the list at No. 1,999 with his $1.1 billion net worth.