UK-based private equity major Apax Partners is learnt to be interested in picking a controlling stake in Patni Computers Systems for over $800 million. Sources close to the development say two mid-tier Indian IT companies and some private equity (PE) funds are also in the fray.
These moves come as Gajendra and Ashok Patni, who are co-founders and together own 28% stake in the Mumbai-based company, are looking to exit. PE firm General Atlantic too is looking to sell 16%. When contacted by ET, Apax Partners India head Neeraj Bharadwaj declined to comment on the possible investment.
Patni Computers was founded by three brothers—Ashok, Narendra and Gajendra Patni—who together own 44% in the company. While the two siblings—Ashok and Gajendra—are keen to sell their stake, Narendra Patni will continue to hold a 16% stake in the company.
Patni was once among the leaders in the Indian software market. But over the years, it has slipped. Today, it’s known more as the company where founders of Infosys Technologies used to work. For fiscal 2006, the company had revenues of $579 million and logged a net profit of $59 million. It had around 13,000 employees at the end of March, 2007.
Read more in The Economic Times article.
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