Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, January 10, 2011

iGate, Apax to buy majority stake in India's Patni for $1.2bln

U.S.-listed software firm iGate , backed by private equity firm Apax Partners, is buying a majority stake in India's Patni Computer Systems for $1.2 billion, marking one of the largest deals in India's technology sector. Small-and mid-cap IT services firms have been grappling with tepid demand and high attrition rates due to tough competition from larger rivals, and a rise in costs expenses in India's $60 billion software services sector. Combining operations would allow mid-sized companies such as iGate and Patni to increase scale and target bigger clients for outsourcing contracts in India's export-driven IT services industry.