Patni Computer Systems Company History and Evolution

Patni Computer Systems has a rich history that spans several decades. Founded in 1975 by Narendra Patni, the company started as a small software services firm in Mumbai, India.

Patni Computer Systems began its journey by providing software development services to clients in the US and UK. The company's early success was driven by its ability to deliver high-quality software solutions at a lower cost than its competitors.

The company's first major breakthrough came in the 1980s when it started providing services to the US-based company, IBM. This partnership helped Patni Computer Systems to expand its global presence and establish itself as a reliable software services provider.

Patni Computer Systems continued to grow and evolve, expanding its services to include IT consulting, systems integration, and business process outsourcing.

iGATE Corporation acquired Patni Computer Systems Limited in January 2011.

The acquisition was made by buying shares of the major shareholders of Patni, which comprised 63% of Patni's total outstanding shares.

iGATE plans to delist shares of Patni Computer Systems to obtain full ownership of the company. This will be done through a reverse book building process by mid-2012.

The delisting will be done through two of iGATE's subsidiaries, and the company will arrange a debt facility of around $215 million for the acquisition.

iGATE had acquired a majority stake in Patni for $1.2 billion in one of the largest deals in India's technology sector.

Public shareholders own about 12.5 percent of Patni, while the founders hold 80.4 percent of the company's shares.

iGATE plans to offer shareholders a minimum price of 356.74 rupees a share, an 8.2 percent discount to Patni's Wednesday close of 388.85 rupees on the National Stock Exchange.

After acquiring Patni, iGATE will rebrand its new entity as simply "iGATE."

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Patni Computer Systems was formed by Narendra Patni and his wife, Poonam Patni, in 1978.

The company was one of the pioneers of the outsourcing industry in India, based in Mumbai.

Patni was acquired by iGate Corp. in January 2011 for $1.2 billion, along with private equity firm Apax Partners.

iGate Corp. and its subsidiaries were rebranded as "iGate" in 2011, after the acquisition.

The Indian government allowed iGate to drop the Patni name due to its being a family name, which can be used by anyone with the same family name.

The company had $779.6 million in revenue and $51.5 million in profit in 2011.

Phaneesh Murthy, iGate's chief executive, said the company was looking to change its image as a younger, more aggressive company with a high-performance, outcomes-driven culture.

The current economic climate in India, including the deepening and maturing of the market, created an opportunity for iGate to rebrand and change its image.

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Patni Computer Systems made several strategic acquisitions and formed OEM agreements to expand its capabilities and enter new markets.

In April 2003, the company acquired The Reference Inc. for $7.5 million, gaining specialized skills and domain expertise in the financial services industry.

Patni's acquisition of Cymbal Corporation in November 2004 allowed the company to enter the IT services market in the telecom vertical.

Through the acquisition of ZAiQ Technologies in June 2006, Patni obtained ASIC design capabilities and IP, as well as expertise in FPGA and SoC technologies.

Patni's expansion into Europe was marked by the acquisition of Logan-Orviss International (LOI) in July 2007, a leading independent specialist telecommunications consulting services company.

In the same month, Patni acquired Taratec Development Corp. for $27.2 million, gaining a leading consulting company in the life sciences industry with over $20m in annual revenue.

Here's a summary of Patni's key acquisitions: