Funds advised by Apax Partners to invest in iGATE, and iGATE to acquire a controlling stake in Patni Co.
17 January 2011
London,
17, January 2011 - Viscaria Limited, a company backed by
Funds advised by Apax Partners, announced that it signed a
definitive agreement with iGATE Corporation ("iGATE") to invest up
to US$480m in iGATE, and that iGATE's subsidiaries are acquiring a
majority stake in Patni Computer Systems Ltd ("Patni"), one of the
leading global providers of Information Technology services and
business solutions. In accordance with the requirements of
the Securities and Exchange Board of India ("SEBI") and the
applicable Indian rules on Takeovers and Mergers, iGATE's
subsidiaries will also make an open offer to the public
shareholders and a tender offer to the holders of American
Depositary Shares of Patni to purchase up to an additional 20%
stake in Patni.
Patni is one of the leading IT
services companies in India with over 16,500 employees. Patni
offers a wide range of IT services to largely US and EMEA clients
and has a strong reputation amongst customers for quality of
delivery. iGATE is a Nasdaq-listed information technology firm
which provides offshore-based outsourcing services to Fortune 1000
clients, with over 8,200 employees worldwide. iGATE follows an
innovative approach of integrating IT and IT-enabled operations and
leverages a global delivery model to provide clients with clearly
differentiated and demonstrated business value.
Shashank Singh, Co-Head of the Apax
India office, said "This transaction is an ideal example of Apax
leveraging its sector knowledge to bring together two companies
whose combined management team, vision and growth opportunities
create a credible competitor in the offshore IT services
space. Phaneesh Murthy is an exceptional leader with the
vision to drive this combined company, and we are pleased to have
forged this partnership with him. We remain hugely excited by the
investment opportunities that we have consistently witnessed since
we opened the Mumbai office in late 2006, and have now completed
two landmark transactions in India in-line with the Apax global
strategy."
Salim Nathoo, Co-Head of the Tech
& Telecom sector at Apax, said, "IT Services and Business
Process Outsourcing ("BPO") is a sub sector that we have been
tracking on a global basis for some time. In addition to the
current transaction, our investment in TIVIT, the largest IT and
BPO services provider in South America, early last year reflects
our commitment to this exciting high-growth sub-sector."
Phaneesh Murthy, CEO of iGATE,
commented "Patni has a stable customer base, an excellent talent
base of employees and a great reputation for quality
execution. With the backing of Apax Partners, we aim to make
the iGATE - Patni combination a leading services company
globally. We believe Apax's deep understanding of this
sector, and their people make them the perfect partner for this
deal."
In the past 12 months, Funds
advised by Apax Partners have invested or committed €3.1bn in eight
new investments across four continents. Over the same period the
Funds have successfully sold all or part of their stakes in IFCO
Systems, Tommy Hilfiger, Bezeq, Promethean World, SMART
Technologies, Spectrum Holding Company, rue21.inc, Qualitest and
TDC A/S.
Tech & Telecom is one of the
five sectors on which Apax Partners focuses exclusively. Notable
current and historic investments in the sector include Tivit, the
leader in integrated IT and BPO services in Latin America; Sophos,
a UK-based provider of endpoint security software; Trizetto, a
leading supplier of IT solutions to the US healthcare industry;
Bezeq, the largest telecom group in Israel; SMART Technologies Inc,
a Canadian provider of interactive collaboration products; TDC A/S,
the pan-European telecoms business headquartered in Denmark;
Weather Investments, an international telecommunications business;
and Inmarsat and Intelsat, which are both global satellite
operators.
Apax was advised in the transaction
by Standard Chartered Bank, Kirkland & Ellis LLP, Khaitan &
Co, Kotak Mahindra Capital Company Limited, and Ernst &
Young.