US software firm iGATE’s deal with Apax Partners for a majority stake in Patni Computer Services is still on the table but has been delayed due to procedural issues, a source with direct knowledge of the matter said on Monday.
Shares in Patni fell nearly 4% a day after iGATE cancelled a press conference scheduled for Monday, at which it was expected to announce the agreement with Patni. The terms of the deal remain the same, including the price of around R500 a share, the source said, valuing the deal at more than $900 million (around R1,450 crore) for a 63% stake in Patni.
The board of Patni Computer was set to meet on Monday, where it was expected to evaluate the deal terms. It was unclear if the board meeting had occurred. Patni declined comment. iGate and Apax did not return calls seeking comment.
However, the two sides were still trying to pull together the deal, another source in the know said.