Mumbai: US software firm iGate plans to host a press conference on Monday at which it is widely expected to announce a deal to buy India's Patni Computer for more than $900 million.
The US company, backed by private equity firm Apax Partners, plans to pay around Rs 500 a share for a 63 per cent stake in the company, a source previously told Reuters.
iGate plans to hold a press conference at noon on Monday, the company said late Sunday. The Economic Times newspaper said Patni's board planned to meet Monday morning and that iGate would announce the deal after that, citing two sources with direct knowledge of the deal.
Patni's shares on Friday closed at Rs 460.10 on the Bombay Stock Exchange.
iGate cancelled a scheduled press conference last week, at which it was expected to announce the deal. The delay was due to procedural delays, a source with direct knowledege of the matter told Reuters.
Patni, a mid-sized IT services company also listed in New York, provides technology outsourcing services to industries such as insurance, telecoms, utilities and retail.
Its clients include General Electric Co, Hitachi and Procter & Gamble Co's Gillette brand.
Small- and mid-cap Indian IT companies have been grappling with tepid demand, high attrition rates amid tough competition from larger rivals, and a rise in expenses. Merging would allow mid-sized companies to increase scale and target larger clients.
The Patni family includes three founding brothers, who collectively hold about 46 per cent of the company. Private equity firm General Atlantic was also looking to sell its roughly 17 per cent holding in the software services exporter, sources had previously told Reuters.
Talks to sell a stake in the software services exporter have been going on for about two years, but Patni has failed to finalise a deal due to valuation gaps with potential buyers, sources previously had told Reuters.
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