Infy Capgemini takeover
Posted by on 30th, 2007
Infosys Technologies is believed to launch a takeover bid for Europe’s largest IT service group, Capgemini. This would give Infy an opportunity to enter the consulting market and compete with other consulting Giants
Infosys huge cash reserved of Rs.6200 crore and a market cap of $27 billion, Infosys can pull of the acquisition of Capgemini having a market value of $10.4 billion. But the growth rates of both companies are quite different with Infosys having higher growth as compared to Capgemini. Another issue that would arise in the case of merger would be the cultural integration issue.
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