Syntel, Inc. (NASDAQ:SYNT) Q2 2018 Earnings Conference Call - Final Transcript
Jul 26, 2018 • 08:00 am ET
Ladies and gentlemen, thank you for standing by, and welcome to the Syntel Second Quarter 2018 Earnings Call. There will be no question-and-answer session today after the conclusion of management's remarks. As a reminder, this call is being recorded today, Thursday, July 26, 2018.
I will now turn the call over to Zaineb Bokhari, Syntel's Vice President of Finance.
Thank you and good morning, everyone. Syntel's second quarter earnings release crossed GlobeNewswire at 06:00 a.m. Eastern today. It is also available on our website at www.syntelinc.com.
On the call with us today, we have Bharat Desai and Prashant Ranade, Syntel's Co-Chairmen; Rakesh Khanna, Syntel's CEO and President; and Anil Agrawal, Syntel's Chief Financial Officer.
(Forward-Looking Cautionary Statements)
In addition, on July 20, Syntel entered into a definitive merger agreement with Atos S.E., under which Atos will acquire Syntel for $41 per share in cash. The merger agreement has been approved unanimously by the Boards of Directors of both companies. However, it is subject to regulatory approvals, the approval of our shareholders and other customary closing conditions.
The transaction is expected to close by year-end 2018. Since this transaction is still pending, we will be limiting our comments about this to statements that Syntel has made in our press release issued on July 22, 2018, and our Form 8-K filed on July 23, 2018. For information about Atos, please refer to their public comments and statements. I'll now turn the call over to Syntel's Co-Chairman, Bharat Desai. Bharat?
Thank you, Zaineb. Good morning, everybody, and thank you for joining us today. I want to open my comments by expressing my excitement about Syntel's definitive merger agreement with Atos. The Syntel board is committed to maximizing shareholder value, and the board and I believe that the agreement with Atos achieved that objective and delivers a win-win proposition to our customers and employees.Atos is an extremely well-regarded organization with an impressive intellectual property portfolio and strong technology capabilities. Atos' leadership position in digital transformation and global scale makes them a natural fit for Syntel. There is a tremendous amount of mutual respect and cultural alignment across the 2 organizations.
While we undergo the regulatory review processes and work to meet all of the other closing conditions, Syntel, remains an independent company, and we are focused on serving our customers and building a strong track record of profitable growth. This clearly comes across in our second quarter results.
The solid growth seen during Q2 reflects our commitment to strengthen and deepen customer relationships. Our execution has improved over the last 4 quarters as a result of these efforts, and we will continue to invest in this initiative.
Syntel has taken a carefully considered approach to help our customers transform their businesses and harness the power of new technologies. Our innovative digital services support deeper client connect and enhanced business insights. As companies embark on deeper transformation programs, our comprehensive offerings support the modernization of applications, infrastructure and data elements and leverage automation to drive a