IS INFOSYS TAKING OVER CAPGEMINI???

There were rumors of a possible takeover of Capgemini. And that too by Infosys — the Indian tech giant that has grown organically, setting up centers in most major delivery geographies. Yet, Infosys has been slow in the acquisitions area compared to its rivals Wipro (with its now famed “string of pearls” approach to acquisitions) and TCS.

Capgemini is the largest IT company in Europe with a turnover of Rs 42,350 crore in FY07 (year ending December), which is more than three times the revenues of Infosys which stood at Rs 12,699 crore during FY07. But the FY07 net profit for Infosys stood at Rs 3845 crore, which is almost, double that of Capgemini's. And also it had shortly acquired Kanbay which had a good turnover and sound consulting practice

So is it beneficial for Infosys to bid for the company?

Infosys management has said in the past that they’re looking at acquisitions as a means to break into new markets. And Europe, with its high growth rates and the advantage of a currency that is strong against the rupee, unlike the dollar, is a region that Indian tech firms are eager to tap into.

I believe it going to be a very costly affair for Infy, more over there would be lot’sa issues between Infy & Capgemini(CG) on Integrating businesses and creating sync among resource management. though mkt cap & profit Margins is a plus for Infy but CG is a superior to Infy in all aspects of IT business be it manpower quality, turnover, client base, area of operation, value size of deals, International brand equity etc.