Patni nears $25 mn European buy

IT major Patni Computer Systems is close to acquiring a European IT company for $20-25 million (around Rs 100 crore) and is expected to announce the deal in the next two months.

The acquisition gains importance as two private equity majors – Apax and Carlyle – are in advanced stages of discussion to acquire a 20 per cent stake in the Indian IT major from two of its largest shareholders — Ashok Kumar Patni and Gajendra Kumar Patni — who together own about 29 per cent.

According to sources close to the development, Patni has finalised the takeover of a European company operating in the media and telecom space, whose name is still under wraps. The acquisition is on a minus 45-day period (means would close in 45 days) and a subsequent announcement will be made.

Earlier in June 2006, the company acquired US-based ZAiQ Technologies, an application specific integrated service (ASIC) design firm in an asset purchase transaction of $425,000.

Read more in The Business Standard article.