New Dehli: Carlyle Group bid on its own to buy control of Patni Computer Systems Ltd and didn't make an offer with Advent International Corp, said a person with direct knowledge of the transaction.
Carlyle, the world's second-largest buyout firm, had previously been working with Advent to acquire the 45.9 per cent stake held by Patni's founding family as well as a stake held by General Atlantic LLC, said the person, who declined to be identified because the matter is private. Advent wanted to offer a lower price for the Indian software company, so Carlyle decided to go alone with its bid, the person said.
Join the board
Former TPG Capital partner Vivek Paul is advising Carlyle and may join Patni's board if its bid wins, the person said.
Christopher Ullman, a Carlyle spokesman, declined to comment. Narendra Patni, chairman at the Indian computer-services provider, didn't respond to an e-mail and a call to his Mumbai office after office hours. Patricia Hedley, a spokeswoman for General Atlantic, and Louisa Feltes, an external spokeswoman for Advent, didn't respond to e-mails.
A controlling stake in Patni would allow the winning bidder to tap the recovering market for outsourced technology services, an industry that Forrester Research Inc estimates will grow 7.6 per cent to $253 billion (Dh929 billion) next year after rising 2.7 per cent in 2010.
The sale would allow 68-year-old Patni and his family to exit the company as demand for computer services helped the stock more than double since its initial public offering six years ago.
Joint bid
Patni shares jumped 2 per cent Friday in Mumbai to Rs490 (Dh39.9), taking the year-to-date gains to 14 per cent.
Carlyle is competing with Apax Partners LLP and IGate Corp, which are jointly bidding for the stake, three people said on December 15. The management of Patni has been spending more time with the Apax group, two other people said.
A final decision may come by early this week, they said. IGate Chief Executive Officer Phaneesh Murthy and Benjamin Harding, a London-based spokesman for Apax, didn't respond to e-mails seeking comment.
The Economic Times, citing people it didn't identify, reported Friday that IGate is set to win the Patni stake after Advent backed out.
Depositary receipts
General Atlantic held a 2.1 per cent stake in Patni through the company's Mumbai-traded shares, as of September 30, and a 15.4 per cent stake through its holdings in its American depositary receipts, according to data posted on the Bombay Stock Exchange's website.
Patni, founded in 1978, prepares customised software and maintains computer systems for 280 customers in 38 countries.
The seven founders of Infosys Technologies Ltd, India's second-largest software exporter, worked at Patni Computer before starting their own company in 1981.
