iGate-Apax close to buying Patni ?

A consortium of Apax Partners and iGate are close to buying 63% of Patni Computer Systems, a source with direct knowledge of the matter said today, in a deal valued at about $915 million. HT reports.

A consortium of Apax Partners and iGate are close to buying 63% of Patni Computer Systems, a source with direct knowledge of the matter said on Monday, in a deal valued at about $915 million.

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The Apax-iGate consortium has offered about R500 a share for the stake, the source said, adding that a deal is likely to be announced early next week.

Patni shares closed at R486.40 on BSE on Monday.

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% stake in Patni following the agreement, the source said.

There have been talks that the Patni promotors are trying to sell a stake for about two years, but Patni has failed to seal a deal due to valuation gaps with potential buyers, sources have said previously.

“The Patni promoters have to do the deal. They just have to extract that last drop,” Arun Kejriwal, strategist, KRIS. “And if they (iGate-Apax) are going to raise debt for the acquisition, it will most likely burden Patni.”

The iGate-Apax consortium is taking a loan of about $500 million to fund the deal, the source said.

Patni, iGate and Carlyle were not available for comment.

Patni, a mid-sized IT services firm also listed in New York, provides technology outsourcing services to industries such as insurance, telecoms, utilities and retail.