Pristine Financial Modeling team has prepared a financial model based on the acquisition of Patni Computer Systems by iGate. An excerpt of this news item on the Economic times -
US-based iGate acquired nearly 63 per cent stake in country’s sixth largest IT firm Patni Computer Systems for $1.22 billion.
iGate will buy 45.6 per cent of the shares of the three founders of Patni – Narendra Patni, Gajendra Patni and Ashok Patni- along with the 17.4 per cent stake of private equity firm General Atlantic,
The transaction is valued at approximately $1.22 billion, including the mandatory 20 per cent open offer to be made to the public shareholders of Patni.
The deal is good for Patni, which for the last two years has been undergoing a period of uncertainty, giving it a clear roadmap for growth and competing with the bigger players.
It’s even better deal for iGate, since the combined entity will be worth almost a billion dollars, which can help swing large deals in its favor.
Analysis:
The model is prepared in Excel to give an idea about how the investment bankers go with the analysis of mergers & acquisition deals.
Any merger analysis essentially comprises of following six steps:
- What ownership you get at what price?
- What mix of debt, cash and stock is optimum for you to pay?
- What is the impact on your company?
- Deal is Accretive or Dilutive?
- How your ratios fair with different prices you pay?
- What is the contribution of the target in the pro forma company?
Separate worksheets have been prepared for each of these six essential steps for your reference.
You can download the model here.
(If the link does not work, copy this link http://www.edupristine.com/wp-content/uploads/2011/02/igate-deal.zip and paste it in your address bar)
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| About Anil | |
 | Anil has developed end-to-end financial models for Real Estate, FMCG, Power, Roads and Telecom Sector and released them as Open Source. He has extensive experience in the financial services, analytics and training domain. Apart from making Financial Modeling simple and accessible for the masses, Anil loves playing volleyball and has a mean spike. |
Tags: deals, Financial Modeling, Financial Modeling in Excel, igate, mergers, patni
