Patni nears $25 mn European buy

IT major Patni Computer Systems is close to acquiring a European IT company for $20-25 million (around Rs 100 crore) and is expected to announce the deal in the next two months.

The acquisition gains importance as two private equity majors "" Apax and Carlyle "" are in advanced stages of discussion to acquire a 20 per cent stake in the Indian IT major from two of its largest shareholders "" Ashok Kumar Patni and Gajendra Kumar Patni "" who together own about 29 per cent.

According to sources close to the development, Patni has finalised the takeover of a European company operating in the media and telecom space, whose name is still under wraps. The acquisition is on a minus 45-day period (means would close in 45 days) and a subsequent announcement will be made.

The company is looking at the acquisition to strengthen its foothold in the European market and increase its presence in the media and telecom space. Patni, India's sixth largest IT company, was also on the lookout for targets in the US.

When contacted, Patni Senior Vice-President (Strategic Initiatives) Deepak Khosla declined comment. He, however, admitted that the company was looking at firms in the US and Europe that have a strategic fit with Patni.

Earlier in June 2006, the company acquired US-based ZAiQ Technologies, an application specific integrated service (ASIC) design firm in an asset purchase transaction of $425,000.

ZAiQ Technologies is a provider of outsourced design services and software products to companies that develop complex, high-performance systems and integrated circuits.

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A BYTE OF EUROPE

Patni Computer Systems has finalised the takeover of a European company operating in the media and telecom space

The acquisition is on a minus 45-day period (means would close in 45 days) and a subsequent announcement will be made

The company is looking at the acquisition to increase its foothold in the European market and increase its presence in the media and telecom space