France-based IT service provider Capgemini S.A. has largely integrated its 2015 acquisition of iGATE, with costs and synergies in line with our expectations, helping to boost S&P Global Ratings-adjusted EBITDA margins above 14%. We expect the company will return to a more active program of mergers and acquisitions, which could increase its adjusted debt to EBITDA. Capgemini's operating performance remains stable, and we expect 2%-3% revenue growth before currency impacts, generating adjusted free operating cash flow above €1 billion annually, helping to deleverage the balance sheet and mitigate merger and acquisition risk. We are therefore revising our outlook to positive from stable and affirming our 'BBB' ratings on Capgemini. The positive outlook reflects the potential for an upgrade over the
