Board of Patni Computer Systems has reportedly approved 63% stake sale to US-based IT firm iGate, backed by private equity firm Apax Partners, for an estimated $915m.
As per the deal, iGate and Apax have agreed to pay INR503.5 ($11.08) a share for a 63% stake in Patni. The price does not include fees for a non-compete clause in the agreement.
iGate may also make an open offer for an additional 20% to Patni’s minority shareholders following the deal, according to reports.
Apax is expected to invest about $500m in iGate for the acquisition, and iGate has approached Standard Chartered and Deutsche Bank for loan of another $500m, for the deal.
Patni’s three founding brothers – Narendra Patni, Ashok Patni and Gajendra Patni – are selling their 46% stake, while private equity firm General Atlantic is selling its 17% holding.
Patni is an India-based mid-sized IT services company that is also listed in New York. Its clients include GE, Hitachi and Procter & Gamble Gillette brand.
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