India-based outsourcing firm Patni Computer Systems (PTI) jumps 15% after reporting better-than-expected Q3 results. Net profit fell 41%, but the decline was not as bad as analysts had feared. iGATE (IGTE +2.5%), which took control of Patni in a joint deal with private equity firm Apax Partners earlier this year, also trades higher on the news.
As a top player in India's hot outsourcing market, Infosys (INFY) wants to do some mergers and acquisitions, but will be selective, says CEO Kris Gopalakrishnan. "We look for good companies, we look for right fit, right price, we have certain strategies in place."
iGate (IGTE +1%) reports FY 2010 net revenue of $280.6M, up 45%.3 from 2009, and annual earnings/share of $0.90, up from $0.51/share from the prior year. But CEO Phaneesh Murthy warns of a softening Q1 compared to last year's, as companies delay making IT investments. Rival Infosys (INFY +0.4%) expressed similar concerns.
iGate's (IGTE -0.8%) $1.22B offer for a majority stake in its larger Indian competitor Patni Computer Systems (PTI -3.2%) is making some investors wary that iGate is in over its head. "It’s like a snake swallowing a buffalo, and it’s probably going to take quite some time to digest, probably months," says one analyst.
iGate (IGTE) makes an open offer for 20.6% of Indian outsourcer Patni Computer Systems (PTI). On Monday, iGate, with support from private equity firm Apax Partners, bought a majority stake in Patni for $1.2B. Premarket, iGate -0.1%, Patni +0.2%.
iGate's (IGTE +0.1%) offer of $11.08/share for a 63% stake in outsourcer Patni Computer Systems (PTI +1%) represents an 8.5% premium over Patni's closing price Monday on the Bombay Stock Exchange. With the deal, worth up to $1.2B, iGate expects to get a foothold in the growing Indian outsourcing market.
iGate (IGTE) has reportedly reached a deal to take a 63% stake in India's Patni Computer Services (PTI +3.2%) for $862M, less than the $983M deal sources had previously said was being discussed. It would mark one of the largest deals in India's tech sector.
iGate (IGTE) cancels the press conference scheduled for tomorrow, in which the company was expected to announce a $900M+ deal for a majority stake in India's Patni Computer Services (PTI). iGate has no comment, other than that "the significant corporate development that was set to be announced on Monday is off."
Services provider iGate Corp. is -2.6% after reports it may invest $983M for a controlling stake in Indian software maker Patni Computer Systems (PTI). Since November, sources have claimed iGate has been exploring some sort of deal for the much larger Patni.
iGate Corp. (IGTE) is -21% to $19.61 as sources say the California-based software services company wants to raise $700M to finance a joint bid for rival Patni Computer Systems (PTI), which is +0.1% to $20.58. The Patni family wants to sell its 46% stake, and iGate wants to expand its outsourcing capabilities.
Sources claim that in two weeks, private equity firms Carlyle and Advent will make a $1B joint bid to buy a 63% stake in Indian software exporter Patni Computer Systems (PTI). Patni is +2.5% to $20.88.