News
Atos to acquire Syntel for about $3.4 billion
NEW DELHI: French technology services company Atos SE agreed to acquire Michigan-based Syntel Inc in an all-cash transaction valued at about $3.4 billion, including net debt, the companies said.
“Atos , a global leader in digital transformation today announced its agreement with Syntel , a leading global provider of integrated information technology and knowledge process services, with respect to the acquisition by Atos of Syntel, for aggregate consideration of c.$3.4 billion or $41.0 per Syntel share,” the company said.
The transaction represents c. 14% premium over the 30 trading days volume weighted average share price. The transaction is structured as a one-step cash merger between Syntel and Atos requiring above 50% of Syntel outstanding share capital to execute the merger. On July 20, 2018, the Board of Directors of Syntel uninamously approved the transaction based on the unanimous recommendation of a special committee of the Syntel Board. Written voting agreements with Syntel shareholders, including founders, to vote in favor of the transaction represent 51% of the outstanding shares.
The Board of Directors of Atos meeting held on July 20, 2018 also expressed its full and unanimous support for the transaction.
Thierry Breton, Chairman and CEO of Atos said: ”I am very proud to announce such an important milestone in Atos’ leadership development with the acquisition of Syntel, a leading digital company, established 38 years ago, that perfectly fits our strategic priorities. It represents a transformational step for our Business & Platform Solutions Division as it will significantly enhance its growth and profitability profile through an extended digital services offering, cutting-edge India-based delivery platforms, as well as revenue and cost synergies.
In particular, the highly complementary portfolio, customer base, and geographic footprint of the combination between Atos and Syntel will significantly enhance our presence in North America and accelerate the digital transformation of Atos’s customers worldwide.
I am looking forward to welcoming the 23,000 Syntel engineers and their very strong management to continue delivering together the highest value to our clients and shareholders.”
Bharat Desai, Co-Chairman and Co-founder of Syntel, said: “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.
“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,” he said.
I” am grateful for the trust and confidence of our customers and the passion, commitment and innovative spirit of our employees. Together they have enabled Syntel to achieve great heights. I am confident that this combination will deliver significant value to all stakeholders,” Desai added.
A perfect match with Atos to enhance its digital transformation factory
With its innovative business model aligned to its client’s business challenges, Syntel generated $924 million revenue in 2017, of which 89% was in North America, with 25% operating margin. The Group employs 23,000 engineers in 30 countries, with over 18,000 staff based in India. All of Syntel’s management team is expected to join Atos.
To strengthen Atos’ digital capabilities and existing Business & Platform Solutions and accelerate its Digital strategy
This transaction is a major step in the strategy of Atos to reach a global scale and significantly expand in both Digital services and Business & Platform Solutions. The two organizations are fully complementary in their customer base, geographies, and services. Syntel will enhance Atos’s Digital Transformation Factory thanks to a powerful suite of digital and proprietary solutions recognized by leading industry analysts as being the most advanced in Cloud, Social Network, Mobile, Analytics, Cloud and IoT.
To add Business & Platform Solutions activities in North America
As part of this transaction, upon closing Atos will immediately gain a significant scale in its Business & Platform Solutions Division in North America allowing it to address its existing client base and to offer them high value-add digital services in several specific verticals such as Banking and Financial Services, Healthcare, Retail, Logistics, Manufacturing, and Insurance. Atos will also improve its margin profile in North America.
To significantly strengthen the Group’s Business & Platform Solutions Division with best-in-class delivery platform generating among the highest margins of the industry
Syntel will bring strong capabilities thanks to its best-in-class delivery platform which generates, through its state of the art delivery process, among the the highest margins in the B&PS industry. Syntel offers secure and technically advanced offshore environment with world class-campuses in India, securing access to a talent pool of over 18,000 employees.
A powerful combination with compelling value creation potential
The deal is expected to be EPS accretive immediately with double digit accretion as early as 2019 excluding the impact of PPA and implementation and transaction costs.
Significant cost synergies and cross-selling opportunities
Additionally, the Group expects to generate compelling and significant synergies both at cost and revenue levels.
Atos will benefit from tangible operational improvement by taking advantage of Syntel’s current offshore and talent supply chain to optimize its onshore/offshore headcount mix. Most of those synergies are planned by applying Syntel’s state of the art industry performance to align Atos’s existing B&PS cost model. Additional cost synergies are planned by improving operational effectiveness by reducing SG&A costs including real estate, and optimizing procurement by taking the advantage of the greater scale. The total cost benefits are estimated at $ 120 million per year on a run rate basis by the end of 2021 with a linear phasing.
Strong portfolio and complementary customer base between the two companies will generate multiple cross-selling opportunities, many of them already identified, leading to revenue synergies of c. $250 million to be achieved by the end of 2021, half of them by the end of 2020, with c. $50 million operating margin.
The combination of the two companies will allow Atos to deliver a unique portfolio for end-to-end digital transformation to customers. This will translate in already identified and actionable initiatives to generate revenue synergies in the following areas :
Leverage Syntel’s portfolio in particular digital services, intelligent automation and IT modernization into Atos Clients into North America and Europe
New Global capabilities to capture large End-to-End Digital Transformation projects
Leverage Atos’ portfolio with Syntel Base in Cybersecurity, Big data, IDM and other Atos services
Management
Atos highly appreciates the outstanding achievements of Syntel’s management team. Syntel executives and management will join Atos leadership team in order to help achieve the combined Group’s strong ambitions. The Group will apply its integration methodology as successfully rolled out in past acquisitions. The Group will deeply involve key managers in its development and in particular is glad to announce that Syntel CEO Rakesh Khanna will join Atos’ Executive Committee.
Financing
The acquisition will be financed through debt fully underwritten by BNP Paribas and J.P. Morgan Securities PLC. The debt will be used to fund the purchase cash consideration together with refinancing of outstanding debt.
This transaction is in line with Atos’financial policy with an end of June 2018 proforma net leverage ratio below c.1.6x. The combined entity will maintain a solid liquidity profile and financial flexibility and targets a strong deleveraging in the next two years thanks to anticipated free cash flow generation.
Contemplated timetable
Each of the Atos and Syntel Board of Directors has unanimously approved the transaction, in the case of Syntel, based on the unanimous recommendation of a special committee of the Syntel Board. Written voting agreements with Syntel shareholders, including founders, to vote in favor of the transaction represent 51% of the outstanding shares. The transaction is subject to customary antitrust and regulatory approvals. Applicable works council procedures will be followed. The transaction is expected to close by year-end 2018.
NEW DELHI: Yotta Data Services, an end-to-end Digital Transformation service provider, has announced that its state-of-the-art data centre facility, “Yotta G1”, located in GIFT city, Gandhinagar is ready for service (RFS).
The opening of this data center marks the debut of Yotta in Gujarat and progresses the company’s mission to provide digital services in India’s high-growth markets.
G1 is Yotta’s fifth data center facility in the country. It joins four large operational data centers, two of which, at Navi Mumbai and Greater Noida are part of hyperscale campuses. Yotta G1 is uniquely located inside the International Financial Services Center (IFSC) zone of Gandhinagar’s Gujarat International Finance Tec-City (GIFT city).
G1 represents an investment of more than INR 500 cr. over five years across critical non-IT and IT / Cloud / AI compute infrastructure. The data center has a capacity of over 350 high-density racks and 2 MW power (which can be scaled further as per demand). The facility is designed to meet the most demanding digital needs of its customers, who may be located within GIFT City or anywhere in the world, by seamlessly delivering fault-tolerant facility infrastructure, high-performance Cloud compute and storage infrastructure, advanced physical and cyber security, unmatched connectivity, and steadfast sustainability.
For large global enterprises operating in the GIFT City IFSC zone, the G1 data center functions as a potential data embassy, whereby their data stored is subject to the laws and regulations of their home country, thus allowing them to maintain sovereignty over their data, even when stored in India. By storing data in a physically different location, global enterprises can ensure continuity of operations in case of major disruptions within their borders. The data center’s location also ensures compliance with the IFSC regulations, providing businesses in the zone with distinct advantages like free foreign exchange convertibility, a liberalised regulatory environment, and business-friendly policies. It also helps enterprises adhere to IFSC’s compliance requirements, including being mandated to host their data within the IFSC zone.
Commenting on the announcement, Darshan Hiranandani, Co-founder and Chairman, Yotta Data Services, said, “The state of Gujarat, with GIFT City, has been at the forefront of providing a viable and sustainable platform for global businesses to set up base in India. The setting up of the IFSC zone is a further testament to their vision for financial services companies. We are proud to support this vision of the Gujarat government with a state-of-the-art data center within the IFSC zone, providing the latest and best in cutting-edge technologies to help businesses set up and scale their businesses while also adhering to all regulatory requirements.”
Adding to this, Sunil Gupta, Co-Founder, MD & CEO, Yotta Data Services, said, “Yotta’s G1 marks a pivotal milestone in delivering high-end data center, Cloud, AI compute, storage, connectivity and cybersecurity services to enterprises both on a global and local scale in the Gujarat region. Besides serving the domestic enterprises within and outside GIFT City, our data center shall serve as a potential data embassy for global enterprises, enabling them to adhere to their respective country’s laws while offering a dependable and secure locale for offshore data storage.”
G1 data centre stands distinct in GIFT city for being a data center offering more than just colocation services. True to Yotta’s stature as the end-to-end digital transformation partner of choice for enterprises, G1 brings forth a suite of key features, ranging from advanced data security and customised business solutions to an indigenous hyperscale cloud offering, AI-GPU compute offering, state-of-the-art infrastructure, cybersecurity expertise, seamless integration with managed IT services, 24/7 customer support, cost optimisation, and an overall competitive edge.
This announcement follows on the heels of Yotta’s recent launch of its cloud services – Shakti Cloud and Yntraa Cloud. Powered by NVIDIA’s top-of-the-line GPUs, Shakti Cloud is India’s largest & fastest AI-HPC supercomputer, delivering cutting-edge GPU computing infrastructure, platforms, and services, including Infrastructure as a Service, Platform as a Service, and Software as a Service. Yntraa Cloud, on the other hand, is a truly indigenous hyperscale cloud platform at par with global cloud platforms, offering an exhaustive range of cloud products and services.
NEW DELHI: Domestic contract manufacturer Optiemus Infracom has entered into a joint venture with US-based speciality glassmaker Corning International to set up India’s first manufacturing facility for producing high-quality finished cover glass parts for the mobile consumer electronics industry.
The collaboration between both the companies will help expand India’s electronics manufacturing ecosystem, as the Indian government strengthens its Make in India initiative. As a part of the joint venture, the companies strategically aim to set up a world-class manufacturing facility in India, powered by cutting-edge technologies and processes.
Driven by a shared commitment to innovation and technological excellence, this collaboration will pave the way for the manufacturing of “Made in India” finished cover glass parts for use in mobile consumer electronic devices, and other cover glass applications, to meet the needs of next-generation mobile consumer electronic devices.
The joint venture signifies a powerful synergy between Optiemus’s deep domestic industry and manufacturing knowledge of electronics and telecom market and Corning’s globally-acclaimed expertise in advanced glass technology. By combining these strengths, the joint venture aspires to not only establish cover glass manufacturing capabilities and capacity in India, but also to contribute significantly to the creation of jobs and skill development within India’s thriving technology sector, the companies said in a statement.
Ashok Kumar Gupta, Chairman, Optiemus Infracom, said, “It is a matter of great pride for us to actively contribute to the growing manufacturing ecosystem in the country. With this joint venture, initiated in line with the vision of Hon’ble Prime Minister of India of ‘Make in India’ programme and the “Atmanirbhar Bharat” initiative, we are committed to make available world-class high-quality products for global and local brands.”
“Embarking on this new journey, we intend to emerge as one of the top manufacturers of finished cover glass parts for use in mobile consumer electronic devices in the next five years. Our collective expertise in innovation, design, and manufacturing, will provide holistic solutions for the brands,” Gupta added.
NEW DELHI: Chipset maker MediaTek, which claims to power more than two billion connected devices every year, hosted ‘Catch-up with Tech’ in collaboration with handset brand Infinix on August 28 to share insightful and engaging conversations about the new-age smartphones and innovative technologies powering everyday lives.
The meet-up threw the spotlight on the MediaTek Dimensity Auto, Satellite solutions and Generative AI along with an extensive showcase of newly-launched Infinix Zero 30 5G powered by MediaTek Dimensity 8020, Infinix GT 10 Pro powered by MediaTek Dimensity 8050, and Infinix QLED TV powered by MediaTek.
In terms of specs, the Infinix Zero 30 5G is tailored for young storytellers and creators, featuring the first-ever smartphone to deliver 4K 60fps video recording from its 108 MP OIS rear camera and ultra-high resolution 50MP front camera. The Zero 30 series powered by MediaTek Dimensity 8020 is said to be a game changer for the front camera vlogging experience along with being the slimmest curved AMOLED smartphone in the segment with glass and a vegan leather back panel. It also claims to be one of the most premium-looking devices in the segment.
The event witnessed a panel discussion moderated by Anuj Sidharth, Deputy Director Marketing & Corporate Communications, MediaTek and included expert panelists from Infinix, MediaTek and two renowned professional photographers.
“With the fifth edition of Catch-up with Tech, we aim to bring consumers closer to the technology and enable them to make informed buying decisions based on their diverse needs. In collaboration with Infinix, this meet-up is in-line with MediaTek’s vision of technology democratization and making innovative technology accessible to everyone,” said Anku Jain, Managing Director, MediaTek India. “The MediaTek Dimensity 8020 in Infinix Zero 30 5G brings faster displays, brilliant cameras and ultra-fast performance. Further, MediaTek Imagiq technologies enrich the capture experience by combining dedicated AI, imaging processors and accelerators to provide incredible results,” he added.
Anish Kapoor, CEO, Infinix Mobile India, said, “Featuring India’s first 50MP 4K 60 fps video recording, Infinix Zero 30 5G is primed to redefine smartphone imaging capabilities, setting a new standard for the creators and vlogging enthusiasts. Our collaboration with MediaTek has played a pivotal role in shaping our exceptional smartphone portfolio, and the Zero 30 5G stands as evidence of our unwavering commitment to innovation and delivering unmatched experiences to our users. The display and design of the device represent a leap forward in smartphone technology. As Infinix Zero 30 5G hits the shelves, we are positive that our customers will find this new offering as exhilarating as we do, further empowering creators to capture their story like never before.”
Radhakrishnan Chakyat, a photography evangelist, founder and host of Pixel Viilage, said, “Infinix Zero 30 5G smartphone powered by MediaTek Dimensity 8020 chipset has amazing hardware features, an excellent camera, dual-view video mode and is primed for optimal content creation and saves a tremendous amount of editing time.”
Aarzoo Khurana, a wildlife photographer, said, “Over the last few days, I clicked various pictures and recorded a few videos with the newly-launched Infinix Zero 30 5G powered by MediaTek Dimensity 8020, and the experience has been truly inspiring. Infinix’s smartphone’s OIS feature helps content creators click shake-free pictures and the front camera, which is extremely sharp and detailed, enables content creators to click countless selfies.”
