Services firm CapGemini has made a $1.25bn bid for Kanbay, the US-based IT consultants, in a bid to expand its footprint into the US and Indian markets. The offer of $29 per share, represents a 16 per cent premium on Kanbay's closing price, yesterday.

The firm said the deal was part of its growth strategy, and that once bedded in, Kanbay would add 45 per cent to its US consulting sales, and up its Indian operations by 89 per cent. Kanbay employs 5,000 people on the subcontinent.

It also strengthens its foothold in the financial services sector. Two of Kanbay's major clients are HSBC and Morgan Stanley.

Kanbay's board has approved the deal, and chief executive Raymond Spencer describes it as "excellent news for our shareholders, clients and partners", according to a report on Bloomberg. ®