BANGALORE: US-based iGate on Monday said it has acquired nearly 63 per cent stake in country's sixth largest IT firm Patni Computer Systems for $1.22 billion. 

iGate will buy 45.6 per cent of the shares of the three founders of Patni -- Narendra Patni, Gajendra Patni and Ashok Patni-- along with the 17.4 per cent stake of private equity firm General Atlantic, iGate CEO Phaneesh Murthy told reporters here. 



The transaction is valued at approximately $1.22 billion, including the mandatory 20 per cent open offer to be made to the public shareholders of Patni, he added. 

The deal is expected to be completed in the first half of 2011, after acquiring all the regulatory approvals. Murthy said the company has committed financing of $750 mn for the acquisition. 

"There is scope for consolidation in this sector and it will happen," said Rakesh Rawal, head of private wealth management at Anand Rathi Financial. "Smaller players will have to get together for value creation," he said. 

Shares of Patni Computer were trading at about Rs 466.80, up 1.46 per cent on the Bombay Stock Exchange. 


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