Advent, Calyle Expected to Bid on Patni Computer Systems

Buyout firms Advent and The Carlyle Group are planning a joint bid for 63% of Indian software exporter Patni Computer Systems, Reuters reported, valuing the deal at nearly $1 billion. Reuters said that private equity firm Apax and the technology company Hitachi are also likely to place a joint bid.

(Reuters) – Private equity firms Carlyle and Advent plan to jointly bid for a 63-percent stake in Indian software exporter Patni Computer Systems in about two weeks, in a deal likely to be valued at nearly $1 billion, sources said on Tuesday.

Private equity firm Apax and Japanese technology company Hitachi are also likely to team up to bid for the stake, which is owned by General Atlantic and founders of Patni, the sources, who have direct knowledge of the matter, said.

Bids are expected to come in at 500 rupees to 550 rupees a share, the sources said, valuing the stake at 45.43 billion rupees ($996 million) at the top of the range, a premium of 16 percent over Patni’s stock price on Tuesday.

Talks to sell the stake have been going on for about two years, but Patni has failed to seal a deal due to valuation gaps with potential buyers, the sources said.

“The private equity companies are further along in talks for this deal than any strategic buyer,” one of the sources told Reuters. “If everything goes well, we should be able to close this deal in about a month’s time.”

Officials at Patni, Hitachi and the private equity companies were not immediately available for comment. ($1=45.6 rupees) (Reporting by Sumeet Chatterjee and Michael Smith)