Business Case Studies, Mergers, Acquisitions and Takeovers Case Study

Code : MAA0224

Year : 2011

Industry : Information Technology Services and Business Process Outsourcing

Region : US and India

Teaching Note:Not Available

Structured Assignment :Not Available

Abstract: The case study 'Acquisition of Patni by iGate' discusses how iGate Corporation (NASDAQ: IGTE), the United Sates-based IT and ITES company, acquired India's sixth largest IT services and business solution provider, Patni Computer Systems Limited, on January 10, 2011.

The size of the deal was US$ 1.22 billion, which made it the second largest deal in the Indian IT space. The deal was interesting as Patni was two and half times bigger than iGate and iGate had taken a debt of around US$ 700 million to finance it.

This acquisition created a 'Tier-I' IT player with revenues of US$ 1 billion and a 25,000 human force. However, an acquisition brings with it its own challenges and the iGate management has to overcome these in order to make the acquisition successful.