(PRINTWORDS NEWS) Though there is no official confirmation, iGate Corp is likely to acquire 60 per cent of Patni Computer Systems. The value of the deal can be around $1 billion. Patni Computer is said to have rejected a rival bid from the Carlyle Group.
It is listed among the ‘Best 20 Leaders in Financial Services (Insurance)’ in the 2010 Global Outsourcing 100, by IAOP. The Patni family owns 48.6% in the company, while global private equity firm General Atlantic Partners owns 16% in the company. Patni Computers’ promoters have invited fresh bids for the stake sale, which is likely to close by December 27. The promoters are open to a price of Rs 560 per share. iGate is the highest bidder so far.
The market researchers think that iGate beats the rival team of Carlyle in the bidding process and they will make an open offer for another 20% stake in Patni following the agreement. “The other thing that is going in favour of iGate is that it is not insisting on having a non-compete clause signed by the Patni brothers. This was something the PE consortium was insisting on,” said one of the bankers close to the deal. The iGate is based in Fremont, California with an operational headquarters in Pittsburgh, Pennsylvania. The accusation is thought to be helpful for both the IT service providers. Shares of Patni has gone up 1.74 per cent after this observation has made.
