Capgemini open to show flexibility on Altran ownership structure

/ July 30, 2019/ Altran, Capgemini, France, M&A (large, with revenues above $50m)

Still aiming to take control of Altran, Capgemini is open to show flexibility in its ownership structure. The company targets at least 50.1% of the shares of Altran and will accommodate large minority shareholders.

What seemed like a smooth ride for Capgemini is turning somewhat more complicated, with an investment firm, Elliott Capital Advisors, having announced early July it would take long positions on Altran and would not bring its shares to the Capgemini tender at the price of EUR 14 per share. Elliott owns, currently, 9.46m Altran’s shares, representing less than 5% of Altran’s capital.

This all looks like a poker game. Elliott is trying to get Capgemini to raise its offer for Altran, while Capgemini is saying it will not increase it. Capgemini is still very likely to take control of Altran. Early July, the company took control of Apax partner’s 11.43% stake in Altran.

However, the company will probably have to live with an unusual ownership structure for the firm. In the past, Capgemini has favored by the voice of Paul Hermelin, its CEO, 100% acquisitions (with one significant exception, in Brazil, with CPM Braxis). In short, the integration of Altran will be a bit more complex than Capgemini anticipated.

In the mean time, during its H1 2019, Capgemini reiterated the strategic importance of Altran and provided most light on its “Intelligent Industry” initiative that comprises of ER&D, digital manufacturing, and IoT.

Capgemini also provided names of clients in the ER&D space: Airbus, of course, its largest client. Alstom, Valmet and Denso in automotive, and also NEC and Terumo BCT in medical devices.

Share this Post