Bangalore: US-based iGate-led consortium today clinched a deal to buy nearly 63% stake in India's sixth largest IT firm Patni Computer for about $921 million (Rs4,188 crore) after several rounds of negotiations, reports PTI.
"iGate subsidiaries will pay Rs503.50 per share for buying 63% stake in Patni, pegging the deal at $921 million," iGate CEO Phaneesh Murthy told reporters here.
The deal size, however, will go up to about $1.22 billion (more than Rs5,400 crore), after acquisition of 20% from public shareholders at the same price of Rs503.50 a share through the mandatory open offer.
The aggregate price for the shares to be purchased in the open offer assuming full tender is estimated at $301 million.
Shares of Patni closed at Rs463.85 on the Bombay Stock Exchange, up 0.82% from its previous close.
Gartner senior research analyst Arup Roy said, "The combined Patni-iGate entity will be almost a billion dollar entity which is certainly a good size to have. In the IT service industry size and scale matters a lot to win large deals."
The deal is expected to be completed in the first half of 2011, after obtaining all the regulatory approvals.
"The deal gives us a much larger platform to play on, to bid for much larger deals in the market and gives the combined company many more verticals to play on.
The objective is to synergise the leadership team of both iGate and Patni to create, over time, an integrated leadership team which will drive the combined company to newer horizons," Mr Murthy said.
Founded in 1978, Patni, a mid-sized IT services firm, provides solutions to verticals like insurance, telecom, utilities and retail. It has 16,556 employees, 282 customers and reported revenues of $689 million for the 12 months ended 30 September 2010.
On the other hand, iGate has 8,278 employees, 82 customers with revenues of $252 million for the 12 months ended 30 September 2010.
With the completion of the deal, the combined headcount of both the entities will stand at 24,834 globally as on 30 September 2010.
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