igate acquisition of patni computersgjjgjgjgggg
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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.