course bg
EduPristine>Blog>Patni – iGate deal Financial model

Patni – iGate deal Financial model

February 22, 2011


EduPristine Financial Modeling team has prepared a financial model based on the acquisition of Patni Computer Systems by iGate. You can get an excerpt of this news 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 bought 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 was valued at approximately $1.22 billion, including the mandatory 20 per cent open offer made to the public shareholders of Patni.

The deal seemed good for Patni, which for the last two years (since the deal) had been undergoing a period of uncertainty, giving it a clear roadmap for growth and competing with the bigger players.

It was even better deal for iGate, since the combined entity was worth almost a billion dollars, which helped in swinging large deals in its favor.


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:

  1. What ownership you get at what price?

  2. What mix of debt, cash and stock is optimum for you to pay?

  3. What is the impact on your company?

  4. Deal is Accretive or Dilutive?

  5. How your ratios fair with different prices you pay?

  6. 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 and paste it in your address bar)

About Author

avatar EduPristine

EduPristine is a member of Adtalem Global Education (NYSE: ATGE), a global education provider headquartered in the United States. Adtalem is a 3 billion dollars (20,000 crores) company that has about 9 institutions and companies with more than 16,000 employees spread across 145 locations. Adtalem takes pride in training 142,000 degree-seeking students all over the world.The organization's purpose is to empower students to achieve their goals, find success and make inspiring contributions to our global community. EduPristine is one of India's leading training providers in Analytics, Accounting, Finance, Healthcare, and Marketing. Founded in 2008, EduPristine has a strong online platform and network of classrooms across India and caters to self-paced learning and online learning, in addition to classroom learning


Interested in this topic?

Our counsellors will get in touch with you with more information about this topic.

* Mandatory Field

Post ID = 6928