Indias biggest technology M&A deal to
date has been backed by a rare debt-based financing
California-based iGATE has acquired a majority
stake in Indias sixth largest IT firm Patni Computer
The $1.22 billion deal is backed by private equity
firm Apax Partners. iGATE has agreed to pay $921 million at Rs
503.50 per share for a 45.6% stake from the founding brothers
of Patni, and a 17.4% stake from PE firm General Atlantic.
The buyer will also launch a $300 million mandatory
open offer to the public shareholders of Patni for an
additional 21% stake.
The buyer will raise $270 million financing through the sale
of preferred convertibles and up to an...