iGate buys majority stake in Patni for $1.2 bn
It has been confirmed by the Chief Executive Officer of iGate Phaneesh Murthy, the tainted former US Chief of Infosys, the company has finalized the deal of buying more than 60% of India’s sixth largest IT firm Patni Computer Systems. Now and then the news report acquiring Patni was creating confusion, which seems to have settled with the current news of Phaneesh Murthy’s statement to the journalists in Bangalore. Altogether the company has acquired 63 percent share of the company; out of which 45.6% have come from three founders of the company Narendra Patni, Gajendra Patni, and Ashok Patni and the rest from the private equity firm General Atlantic that is 17.4%. The money spent by the company to acquire the said volume of shares is $ 1.22 billion, which includes the mandatory 20% open offer to the public share holders of Patni. All necessary work related to the deal would be completed in the first half of this year (2011) after getting necessary regulatory approvals.