Igate Case Analysis

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Strategic management is identifying and description of business strategies which could turn market into a fruitful opportunity or minimizing the risk associated. It provides a competitive advantage over its business rival to achieve higher market share in terms of innovation, merger and acquisition, market penetration, diversification and splits.
Strategic implementation is not a new topic in today’s business world, however it has been implemented at the time of ancient dynasties to the world war and now to the business decisions. Modern managers has to be well versed in their company’s capabilities before they could decide on the strategic move. SWOT analysis could help analyse and assist to know the firm’s strength, weakness, opportunities and threats so as to
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IGATE is a US-listed technology and services company headquartered in New Jersey with US$1.27 billion in revenue in 2014. The sale of IGATE has been in the offing for a while after private equity company, Apax Partners, which financed most of IGATE’s US$1.2 billion acquisition of Patni Computer Systems in 2011, converted its debt into equity in November 2014 (becoming its largest shareholder) and also filed with the U.S. Securities and Exchange Commission to have the option to sell its stake. The combined group will have nearly US$13 billion in annual revenue and 177,000 people globally. Capgemini aims to realize revenue synergies of US$100-150 million (through cross-selling and account farming) and cost savings of US$75-105 million over the next three years. The deal’s size and cross-ranging implications make it one of the most significant transactions in the IT-BPO industry. Capgemini is paying a premium for its North American ambitions, over 3x revenue multiple. It outstrips other such deals in the marketplace, notable CGI-Logica (2012) and IGATE-Patni (2011), indicative of the scale and urgent imperative driving deal

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