Exhibit Further to the purchase agreements entered into on Jan 10, to acquire a majority stake in Patni, iGATE and Patni today announced the completion of the acquisition. Both iGATE and Patni will continue to exist as separate listed entities and will work together on an integration exercise with the advice of professional consultants and advisors. The two companies will operate on an independent basis and in the best interests of their respective stakeholders with a view to building value for both sets of shareholders.
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All rights reserved. For reprint rights: Times Syndication Service. Tech and Gadgets. IDBI Bank. Market Watch. Pinterest Reddit. By Shruti Sabharwal. Integration has been pointed out as a major concern for the Nasdaq-listed iGate as Patni is more than twice its size. Industry watchers say iGate might have to deal with high attrition and loss of clients in the months to come and how it tackles this challenge will be key to the success of the deal. When contacted, iGate and Patni said they could not comment on the developments at present.
The senior management team of Patni met the iGate board last week. In an earlier interview to ET, Murthy said they had been discussing retention and incentive packages for Patni employees and that these were likely to be stock-based incentive schemes.
The acquisition, one of the largest in the Indian IT space, puts iGate in the billion-dollar league in revenue. The company said with its differentiated offering and the scale it derives from this acquisition, it will now have a better chance of winning larger deals.
A delisting from the Indian stock exchanges could also be on the cards for Patni as Murthy has been clear he would like a single listed entity in the US. Read more on igate.
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First, Fire the Executives: iGate Patni CEO on His Merger of Unequals
The only logical way forward for Mindtree founders is to sit together and agree on a common framework to operate. Vemuri, whose exit was widely speculated around the time Capgemini bought iGate, may walk away with a multi-million dollar exit package. A Pune-based employee remembers the company, before the Patni acquisition, as a small setup which was trying to compete with the larger players. Igate employs 33, people, most of that in India. CCI said that proposed combination "is not likely to have an appreciable adverse effect on competition in India". The move was triggered by IGate stock price consistently trading above a threshold mark and the company's desire to reduce the debt overhang.
iGate kicks off integration with Patni Computers
Ashok Trivedi Co-Founder . The firm had over 70 offices and customer delivery centers in North America, Europe, Asia and Australia. From Wikipedia, the free encyclopedia. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources.
iGate completes Patni acquisition
Shares of IT firm iGate Patni today fell by over 3 per cent on the bourses after the company reported decline in its net income for the second quarter ended June 30, The bonus package will cover around senior staff at the mid-management level - from Patni Computer and from iGate. If we can do that, we will be a really special co", he said. After months of speculation and anxious moments for investors, employees and customers of Patni Computer Systems, iGate became the new owner of the firm creating a combined entity that is close to a billion dollars in software export revenues. The integration of Patni Computer Systems with iGATE, expected to be completed in 12 months, offers multifold synergies to the combined entity. All rights reserved. For reprint rights: Times Syndication Service.