Wednesday, June 6, 2007

Apax to buy Patni stake for USD 800 mn

Apax Partners, a UK-based private equity firm, is planning to buy a controlling stake in Mumbai-based Patni Computer Systems for over USD 800 million, reports Economic Times. Apax is willing to pay 8-10% higher over the present share price, for 44% stake in the company.

Two other mid tier Indian IT companies and other private equity firms are also in the race to acquire stake in the company.

The move was stimulated by Gajendra and Ashok Patni (co-founders of the company), who expressed their will to exit from the company. They together hold 28% stake in the company. General Atlantic, another private equity firm is also considering to sell 16% stake. Narendra Patni (co-founder) will continue to hold a 16% stake in the company.

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