New York: IGATE's acquisition by French rival Capgemini will make its CEO Ashok Vemuri richer by over USD 19 million (about Rs 120 crore).
Yesterday, the French IT services company had said it would buy IGATE for USD 4 billion in an all-cash deal.
Both the firms in a joint statement said Capgemini would offer USD 48 for every IGATE share as part of the merger agreement, which was 4.7 percent more than the New Jersey-based firm's Friday stock closing price of USD 45.85 on the Nasdaq.
Vemuri, who took over as IGATE's chief in 2013, holds 400,000 shares of the firm, according to NASDAQ. These shares at USD 48 apiece will give USD 19.2 million to the the former Infosys Sales Head.
Vemuri's earnings could have have been about 19 percent higher if he had not sold his 18,750 shares of IGATE at USD 39.01 per share in February this year. Vemuri made around USD 731,000 (close to Rs 5 crore) from this share sale.
The earnings if USD 19.2 million will be in addition to his salary, bonus and other compensations, which could add up to over USD 2 million for the 2015 fiscal.
IGATE's acquisition will give Capgemini access to its clients such as General Electric and Royal Bank of Canada as well as boost its US-generated business to 30 percent of its total revenue and make North America its largest market.
On the deal, Vemuri said it is the largest deal in the history of Indian IT services.
"Right now, it is difficult to say how will the final integration look like but we feel comfortable that we have been there, done that, and we probably think we know how to make transitions go smoothly," he said yesterday.
