iGate likely to buy up Patni Computers
27 Dec 2010
A consortium of private equity firms Apax Partners and iGate are close to buying 63 per cent of Patni Computers in a deal valued at about $915 million.
The Apax-iGate consortium has offered about Rs500 a share for the stake. The final deal would likely be announced early next week.
The consortium, which beat a rival team of Carlyle, Advent International and Akansa Capital to the deal, will make an open offer for another 20 per cent stake in Patni following the agreement, as is mandatory under Securities and Exchange Board of India rules, according to reports.
The iGate-Apax consortium is likely to take a loan of about $500 million to fund the deal, on which there was no comment from either company.
The founding Patni brothers are selling their 46 per cent stake while private equity firm General Atlantic is selling its roughly 17 per cent holding in the software services exporter, sources have previously told news agency Reuters.