IGATE’s buyout will make Vemuri richer by $19m

New York, April 28

IGATE's acquisition by French rival Capgemini will make its CEO Ashok Vemuri richer by over $19 million (around Rs 120 crore).

Yesterday, the French IT services company had said it would buy IGATE for $4 billion in an all-cash deal.

Both the firms in a joint statement said Capgemini would offer $48 for every IGATE share as part of the merger agreement, which was 4.7% more than the New Jersey-based firm's Friday stock closing price of $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 $48 apiece will give $19.2 million to the the former Infosys sales head.

Vemuri’s earnings could have been about 19% higher if he had not sold his 18,750 shares of IGATE at $39.01 per share in February this year.

The earnings of $19.2 million will be in addition to his salary, bonus and other compensations, which could add up to over $2 million for the 2015 fiscal. PTI