Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%USDC1.000.01%BNB287.900.44%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

Atos acquires Syntel in IT-merger

Featured image via Pixabay/wynpnt Featured image via Pixabay/wynpnt
Featured image via Pixabay/wynpnt Featured image via Pixabay/wynpnt

Atos expands to US market

French IT firm Atos acquired US IT firm Syntel this weekend, a deal worth $3.4 billion. The deal will give Atos exposure to US firms and better equip the company with knowledge about certain aspects of the IT industry.

Syntel has expertise in cloud services, social media and mobile analytics, and more, which are all very important knowledge bases in IT sector. Plus, because Syntel is based in Michigan, it has access to more North American clients than Atos. The French firm’s sales in the US dropped unexpectedly in the first quarter of 2018, which encouraged them to make this change.

Syntel’s biggest clients include American Express, State Street Bank, and FedEx, which generate 45 percent of the company’s revenue. The combination of Syntel’s clients and expertise will diversify Atos’s portfolio and help them grow. Last year, they lost the acquisition of digital security firm Gemalto to their French rival Thales, so this acquisition of Syntel is definitely a much-needed win for the company.

The US IT company has certainly improved over the past couple years – in 2016, Syntel had a net profit loss of $57 million, and in 2017, it posted a positive profit of $166 million. Over the past year, the company’s stock price has risen over 109 percent. Atos’s stock opened 3 percent higher than last week, but has shot down over the course of Monday, falling over 9 percent.

Although investors may be wary about the size of the deal, the acquisition will likely prove to benefit Atos in the long-run.


Comment Template

You May Also Like

Business

In the wake of Walmart’s departure as a major stakeholder and a stagnating Chinese e-commerce market, JD.com must persuade investors of its importance. This...

Technology

Anthropic stated on Thursday that the advantages of California’s updated measure, which aims to control the development and deployment of artificial intelligence within the...

Economy

Friday saw dollar weakness as investors braced for Jackson Hole address by Federal Reserve Chair Jerome Powell, while the yen topped other currencies in...

Politics

  Joe Biden had other plans for his address. Under the current conditions, at least not this year. Tragedies and hardships have left their...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok