iGATE Corporation formally announced on 10 January 2011 that it bought 63 per cent equity from the promoters of Mumbai-based Patni Computer Systems at a consideration of $1.22 billion, including 20 per cent open offer worth $301 million. The acquisition has been marked as the largest acquisitions in the information technology industry. i-GATE, along with Apax Partners, purchased 45.6 per cent equity held by Patni brothers — Narendra, Gajendra and Ashok and 17.4 per cent stake held by General Atlantic at a price of Rs.503.50 a share, costing $921 million.
The $1.22-billion deal is set to be funded by a combination of cash, debt and equity financing, including a potential public offering of 10 million shares. A debt of $700 millions has been raised from Royal Bank of Canada and Jefferies and Co.
The combined company which is expected to be a key player across banking, financial services, insurance, manufacturing, retail, media and entertainment would have two $100-million clients, two $50-million clients and 36 $5-million clients.
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