M&A

10 November, 2009

India's Patni eyeing acquisition - report

MUMBAI, Nov 11 (Reuters) - Indian software services firm Patni Computer Systems (PTNI.BO) has shortlisted four firms for a multi-million dollar acquisition, the Mint newspaper reported on Wednesday, quoting Chief Executive Officer Jeya Kumar.

It has signed a term sheet with one company before it begins a due diligence, and the acquisition is expected to happen by February, he told the paper.

The company is close to appointing investment bank JPMorgan (JPM.N) for the acquisition, the paper said.

Of the four target companies, one has annual revenue of $150 million to $200 million, the second $100 million and remaining two $60 million to $100 million, the paper said, quoting Kumar.

Last week, the media had reported the outsourcing unit of engineering and construction firm Larsen & Toubro (LART.BO) was in talks to buy a stake in Patni from its founders. [ID:nBOM460442]

The company had said in a statement to the stock exchange the report was speculative and it did not have any knowledge of the transaction cited in the report. (Reporting by Janaki Krishnan; Editing by Ranjit Gangadharan)

Source: http://www.reuters.com