Value addition

Mumbai, May 12: Bangalore-based iGate today announced the completion of the acquisition of Patni Computer Systems and the appointment of Phaneesh Murthy as managing director and chief executive officer of Patni.

The board of Patni has been reconstituted with Jai Pathak as the chairman.

Jeya Kumar has stepped down as the CEO of Patni. Promoter directors Narendra K. Patni and Ashok K. Patni have also resigned. The other new director is Goran Lindahl with existing members Vimal Bhandari and Arun Duggal continuing as independent directors.

Surjeet Singh, chief financial officer of Patni, will continue in office until May 31.

According to a joint statement, the companies will continue to exist as separate listed entities. The duo will work on an integration exercise, while operating on an independent basis.

A 20 per cent open offer by iGate to Patni shareholders was fully subscribed, resulting in the former picking up an 83 per cent stake in Patni.

At a conference call, Murthy said iGate had always believed in separating the posts of chairman and CEO and the model would continue in Patni as well. As regards the go-to-market strategy, he said the firms would function as a combined entity but would operate as separate legal companies.

“We will expand our market presence and, pursuant to our integration programme, go to the market with a common identity called iGate Patni. Under a new logo, iGate Patni will stand for the combined value of both the organisations,” he said.

The companies have an employee base of 26,000 and a client base of 360 besides 10 delivery centres across India, Mexico and Australia, and over 50 offices in 20 countries.

“We believe there are a number of cross-selling opportunities across the 360 clients of iGate and Patni,” he said.