Syntel, Inc. (NASDAQ: SYNT) rose Monday after the company agreed to be acquired by Atos S.E. for $41.00 per share in cash.
The company, based in Troy, Michigan, reported Sunday 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 transaction was unanimously approved by the full Board of Directors of Syntel based on the unanimous recommendation of a Special Committee of the Board.
Bharat Desai, co-chairman 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."
Completion of this transaction is subject to regulatory approvals, approval of Syntel’s shareholders and other customary closing conditions. Completion of this transaction is not subject to any financing condition.
In connection with the merger agreement, Syntel’s founders and certain of their affiliated entities, who collectively own approximately 51.07% of the outstanding Syntel shares, entered into an agreement with Atos to vote their shares in favor of the merger agreement, subject to their right to terminate their obligations in the event the Syntel Board changes its recommendation to shareholders or if the definitive agreement is terminated.
For the second quarter, Syntel expects to report revenue of $249.7 million and earnings per diluted share of $0.49.
Syntel will announce full second-quarter results on Thursday, July 26.
Syntel shares jumped $1.45, or 3.7%, to $40.58 Monday morning.
