igate acquisition of patni computersgjjgjgjgggg

8/3/2019 Igate Acquisition of Patni Computersgjjgjgjgggg

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IGATE ACQUISITION OF PATNICOMPUTERSSUBMITTED BY:

JUGAL POPLI 2010115

R RAJKUMAR 2010116

RAHUL RADHAKRISHNAN 2010118


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INTRODUCTIONCommon brand identity of two organizations --iGATE Corporation

and Patni Computer Systems Limited (Patni)

iGATE have acquired a majority stake in Patni

Provides full-spectrum consulting, technology and business process

outsourcing, and product engineering services on Business

Outcomes-based model


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About iGATEFirst Business Outcomes driven integrated Technology and

Operations (ITOPS) solutions provider.

Industry expertise spanning three decades.

Clients spanning various verticals - Banking, Insurance,

Manufacturing, Retail, Health Care, Media & Entertainment and

Telecom & Hi-Tech.


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About Patni ComputersA global provider of IT services and business solutions.

Servicing Global 2000 clients through its micro-vertical focus.

Banking, financial services (BFS) and insurance (I); manufacturing,

retail and distribution (MRD).

Application development and maintenance, enterprise software &

systems integration services, business and technology consulting.


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OBJECTIVES AND PURPOSE OFACQUISITIONOpportunity to play in larger deals and more verticals.

Opportunity to cross-sell key solutions to a broader client base.

Opportunity to enhance win ratio based on selling combined

strengths.

Efficiencies in operations and delivery services.

Economies of scale from consolidation of shared services.


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ACQUISITIONDate of Acquisition 12th May 2011.

Type of Acquisition Horizontal.


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REASONS OF ACQUISITIONBig size can win big deals.

Employer branding is critical.

Margins matter more.

Consolidation is critical.


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SYNERGY OF ACQUISITIONGoodwill

Infrastructure

Employees

Market

Distribution Channels


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MEANS OF FINANCING iGate now holds roughly 82.5% stake in Patni computers.

63 per cent stake (46 per cent from

Patnispromoters and 17 percent from General Atlantic)

Open offer for garnering 20 per cent more at a price of Rs 503.5 ashare.

The $1.2-billion acquisition was funded by $770 million debt, $330million by issuing convertible preferred stock to Apax Partners (firmwith which it formed a consortium to make this acquisition) andusing cash on hand.


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FINANCIALSRevenues for the six months ending June 30, 2011 were $246.2

million

$ 124.7 million in the corresponding period in 2010

Organic revenues grew 22.2 %, with acquisition adding 75.2 % to

the total revenues


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RESULT Employee Base of 26,000 and a client base of 360.

Two $100 million dollar clients, two $50 million dollar clients and 36 $5million dollar clients.

Top five accounts contributing to 38% and top ten accounts contributing to49% of revenues.

10 Delivery centers across India, Mexico and Australia, and over 50 offices in20 countries.

IGATE continues to generate good operating cash-flow with a cash balance ofover $430 million as on June 30, 2011.

igate acquisition of patni computersgjjgjgjgggg

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