The Indian-American IT services company Patni Computer Systems is likely to be acquired by a consortium of Apax Partners and iGate in a deal said to be worth nearly $1 billion. Several media reports suggest that the U.S.-based iGate Corporation and private equity firm Apax Partners are close to striking a deal to buy 63 percent stake in Patni Computers which is valued at around $915 million.
According to a Hindustan Times report, the Apax-iGate consortium has offered about 500 a share for the stake. Meanwhile, Patni shares were closed at 486.40 on Bombay Stock Exchange on Monday.
Patni had reportedly rejected an earlier bid by a team of Carlyle, Advent International and Akansa Capital. It is said that the present consortium will make an open offer to buy another 20 percent of the company following the agreement.
The media reports also indicated that the iGate-Apax consortium is taking a loan of about $500 million to fund the deal.
Patni Computers was founded by Narendra Patni and his wife, Poonam near the Massachusetts Institute of Technology campus in Cambridge, Massachusetts. It mainly provides technology outsourcing services to industries such as telecoms, insurance, retail and utilities.
Source: Silicon India