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Apax, iGate take Patni Computer for $1.22 billion

  • Anita Davis
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A private equity consortium comprising of Apax Partners and its investee iGate is to acquire a 63% stake in Mumbai-based IT services firm Patni Computer for $1.22 billion, news that comes one week after the finalized deal was initially supposed to be announced, leading observers to believe that the deal had crumbled.

According to a statement from iGate, the company will pay approximately $921 million for the 63% stake, and reserves the right to take an additional 20.6% stake for $301 million. That transaction values iGate at INR503.5 ($11.1) a share, or nearly 9.5% higher than its last closing price.

Last week, Apax and iGate cancelled a briefing that was expected to be the deal's announcement. The companies involved did not immediately provide a reason for cancelling the event, but the action led sources to believe that the deal had collapsed. Last month, news surfaced that the race to acquire a majority stake in Patni was coming to a close. Apax and its partner iGate, a California-based, Nasdaq-listed IT firm backed by Apax, submitted a proposition to pay INR500 a share, up from its then-latest trading price of INR488. Apax and iGate competed with Carlyle and Advent International to acquire the company.

 

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