Two to tango: Phaneesh Murthy is new CEO of Patni

Bangalore: iGATE’s Patni acquisition is complete and the company has appointed Phaneesh Murthy as CEO of Patni. iGATE entered into purchase agreements on January 10 this year to acquire a majority stake in Patni Computers.

The transaction marks completion with the buyout of the principal stockholders, Narendra Patni, Ashok Patni, Gajendra Patni and General Atlantic, and 20% mandatory tender offer to the public shareholders. The MTO was fully subscribed, giving iGATE a majority stake of approximately 83% in Patni Computer Systems.

[caption id=“attachment_8941” align=“alignleft” width=“380” caption=“As a consequence of the acquisition, the Board at Patni has been reconstituted.AFP Photo”]  [/caption]

Both iGATE and Patni would continue to exist as separate-listed entities and would work together on an integration exercise with the advice of professional consultants and advisors, iGATE said in a statement here on Thursday. “The two companies will operate on an independent basis and in the best interests of their respective stakeholders with a view to building value for both sets of shareholders”, it said.

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As a consequence of the acquisition, the Board at Patni has been reconstituted. Jai Pathak will be Board Chairman, Phaneesh Murthy the CEO. Consequently, Jeya Kumar has stepped down as the CEO of Patni. Surjeet Singh, CFO, Patni, would continue in office until 31 May, 2011, and then step down when the Board expects to appoint a new Financial Officer.

Announcing the acquisition, Phaneesh Murthy said ‘‘successful completion of the transaction was our single focus over the last four months and I am very excited to formally move from integration planning to integration execution between the two companies. Our intent is to generate synergies out of the integration… deliver value to our customers.’’

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He added: ‘‘We believe there are a number of cross-selling opportunities across 360 clients of iGATE and Patni and will focus on improving service levels and deepening our engagement with existing clients. The initial feedback from customers has been very encouraging. In the next three years, our goal is to become leader by capability in two verticals and a significant player in at least three to four other verticals.’’

Murthy said the company would significantly expand its market presence and, pursuant to its integration programme, go to the marketplace with a common identity called iGATE Patni.“Under a new logo, iGATE Patni will stand for the combined value of both organisations,” he said.

PTI