Patni signs $200 mn deal with Carphone

Mumbai-based Patni Computer Systems has signed a five-year $200 million deal (about Rs 800 crore) with Carphone Warehouse, Europe's leading mobile phone retailer in the United Kingdom, to maintain networks and write software.

The computer services provider, whose clients include General Electric Co, will become the primary technology partner, providing integrated services across consulting, systems integration, applications development and maintenance.

Patni will also partner Carphone Warehouse in developing next-generation systems for its global telecom and retail operations.

The services will be delivered across pan-European locations by Patni's global consultants and global delivery centres in India. Patni has worked together with Carphone Warehouse over the past four years to develop intellectual property (IP).

The company had announced earlier this month that it had acquired the worldwide rights to Carephone Warehouse's proprietary IP. The company intends to use this for software licensing, to provide reusable intellectual property led IT services, managed services and provision of hosted or 'software-as-a-service' solutions.

Neeraj Gupta, executive vice-president Patni, said, "This deal deepens our relationship with Carphone Warehouse. It also showcases our capability to build vertical focus solutions. The recent acquisition of IP from Carphone also shows that we want to provide solutions to customers based on IP."

Telecom contributes 14 per cent to the company's revenue.

Brian Stones, executive VP and head for Patni's Europe operations, said that the deal was significant as it provided Patni an opportunity to showcase its capabilities across Western Europe.

The deal will strengthen the company's presence in Europe.

Patni acquired telecom consulting firm Logan Orviss International recently, to strengthen its capabilities in this area for its telecom clients.

The company has been in the news over a stake sale being considered by Patni brothers, Ashok and Gajendra, who, it has been reported, have agreed to take up non-executive positions in the company post the stake sale.

Private equity players Apax Partners and Texas Pacific Group are said to be in the final stage of closing the deal with the Patni brothers.

The company's shares closed at Rs 451.80, down 0.66 per cent (about Rs 3) on the Bombay Stock Exchange on Wednesday.