...- France-based Capgemini SE plans to acquire Altran Technologies S.A. (##/Watch Pos/--), a leading provider of engineering and research and development (ER&D) services, for a total cash consideration of 3.6 billion, before taking into account 1.4 billion of net financial debt. - Capgemini has secured 5.4 billion of bridge financing for the deal, which it plans to refinance with 1 billion of cash on balance sheet and new debt. - We see the acquisition as improving Capgemini's scale, market positions, diversification, and revenue growth prospects, and strengthening its profitability and cash flows once Altran is fully integrated, but we don't see it as transformative for the business risk profile. - We expect Capgemini's pro forma adjusted debt to EBITDA will weaken to about 3.0x-3.5x in 2019 and 2020 as a result of the financing. - We are therefore placing our '###+' long-term ratings on CreditWatch with negative implications, reflecting a likely one notch downgrade once the transaction...
