
Syntel Inc's acquisition is a significant move to boost its financial services offerings globally.
Syntel Inc has made a strategic acquisition to enhance its presence in the financial services market.
The acquisition will enable Syntel to expand its services to more geographies, including the US, UK, and Australia.
This move is expected to increase Syntel's revenue and market share in the financial services sector.
Syntel's financial services division will now have a stronger presence, allowing it to offer more comprehensive services to its clients.
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Acquisition and Impact
Atos has completed the acquisition of Syntel Inc., a leading global provider of integrated information technology and knowledge process services, for $3.4 billion.
The purchase price was financed through debt fully underwritten by BNP Paribas and J.P. Morgan Securities PLC, with a group of 25 banks participating in the syndication.
Syntel's shares will cease trading, and will be delisted from the NASDAQ, as a result of the acquisition.
The acquisition is expected to generate compelling and significant synergies both at revenue and cost levels, with expected revenue synergies of c. $250 million by the end of 2021, and cost synergies estimated at $120 million per year on a run rate basis by the end of 2021.
The transaction is expected to be EPS accretive immediately, with double digit accretion as early as 2019 excluding the impact of PPA and transaction and implementation costs.
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Syntelovation
Syntelovation is a crucial aspect of acquisition, allowing companies to expand their capabilities and offerings through strategic partnerships.
Syntelovation involves the integration of technology and services to create new solutions, as seen in the acquisition of IT companies by larger corporations.
This approach enables companies to leverage each other's strengths and expertise, resulting in innovative products and services.
For example, the acquisition of IT company Syntel by Atos in 2017 resulted in the creation of a new global IT services company.
The combined company offered a range of services, including consulting, systems integration, and managed services.
Through syntelovation, companies can also reduce costs and improve efficiency by eliminating redundant processes and systems.
By integrating their operations and leveraging each other's technologies, companies can create a more streamlined and effective business model.
Acquisition to Strengthen Financial Services Offerings
Atos is boosting its North American operations with a $3.4 billion cash deal to buy Michigan-based IT services provider Syntel Inc.
The acquisition will strengthen Atos' activities in banking, finance, and insurance, allowing it to provide complete IT solutions to its U.S. customers.
Atos will pay $41 per share, a premium of 4.78% to Syntel’s closing price of $39.13 on Friday.
This deal will provide Atos with a significant boost in its North American presence, with Syntel generating $924 million in revenue in 2017, of which 89% was in North America.
Syntel's expertise in digital services, including banking and financial services, will complement Atos' existing offerings and create new opportunities for growth.
Atos expects to generate compelling synergies from the acquisition, with revenue synergies of c. $250 million by the end of 2021, and cost synergies estimated at $120 million per year on a run rate basis by the end of 2021.
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Business and Leadership
Syntel, Inc. has a strong presence in the business and leadership world. The company has been recognized as one of the best companies to work for by various organizations.
Their leadership team has a proven track record of success, with many executives holding advanced degrees from top universities. This expertise has helped drive the company's growth and innovation.
Under their leadership, Syntel has expanded its operations globally, establishing a presence in over 30 countries. This international reach has enabled the company to tap into diverse talent pools and stay competitive in a rapidly changing market.
Syntel SocioCalyx
Syntel SocioCalyx is a powerful platform that allows users to access, organize, and analyze updates from social media and other online communications networks on a community page.
By leveraging this platform, businesses can gain valuable insights into their online presence and customer engagement.
Syntel SocioCalyx features software platforms where users can access, organize, transmit, manage, track, measure, and analyze updates from social media and other online communications networks on a community page.
This level of transparency and visibility can help businesses make informed decisions and stay ahead of the competition.
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Business
Syntel Private Limited operates its business through four distinct segments: Application Outsourcing, Knowledge Process Outsourcing, e-Business, and TeamSourcing.
The Application Outsourcing segment provides ongoing management, development, and maintenance services for customers' business applications. This segment is a key part of Syntel's business model, helping companies streamline their operations and improve efficiency.
Syntel's Knowledge Process Outsourcing segment offers outsourced solutions for business processes, leveraging technology to enhance customer outcomes. By partnering with Syntel, companies can gain a competitive edge in their respective markets.
The e-Business segment at Syntel focuses on developing and implementing emerging technology applications, including web development, data warehousing, e-commerce, CRM, Oracle, and SAP. This segment also involves partnership agreements with software providers to offer customers a comprehensive range of services.
Syntel's TeamSourcing segment provides professional information technology consulting services directly to customers on a staff augmentation basis. This segment is ideal for companies seeking to augment their IT capabilities with experienced professionals.
Here are the four business segments offered by Syntel:
- Application Outsourcing
- Knowledge Process Outsourcing
- e-Business
- TeamSourcing
CEO Bharat Desai on Global IT
CEO Bharat Desai on Global IT is a notable example of leadership in the tech industry. He has been instrumental in driving innovation and growth at Syntel, a global IT company.
Desai's vision for Syntel has been to make it a leader in the global IT market. He has successfully expanded the company's operations to over 20 countries worldwide.
One of the key strategies Desai has employed is to invest heavily in emerging technologies, such as cloud computing and artificial intelligence. This has enabled Syntel to stay ahead of the curve and offer cutting-edge solutions to its clients.
Desai's leadership has been recognized globally, with numerous awards and accolades to his name. He has been named one of the top CEOs in the world by various publications.
Under Desai's leadership, Syntel has consistently delivered strong financial performance, with significant revenue growth year over year.
Frequently Asked Questions
How many employees does Syntel have?
Syntel has approximately 111,000 employees worldwide. Learn more about Atos Syntel's global workforce and operations.
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