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MACR Igate Patni Ver4.0
MACR Igate Patni Ver4.0
iGate-Patni
Introduction
Background
iGate entered into purchase agreement with Patni (2.5 times
MD of combined entity
Combined entity referred to as iGate Patni with adequate
Combined Entity
Diversified Revenue
Financial Highlights
Acquisition Details
Price paid by iGate was Rs 503.5 amounting to $921 million to
Key Assumptions
Parameter
(as on Dec.
2010)
iGate
Patni
Sales growth %
15%
10%
EBIT margin %
30%
32%
4%
9%
15%
19%
3%
5%
1.19
10.5%
15.7%
Depreciation as % of
Sales
Tax rate on EBIT
Terminal growth rate
Unlevered Beta
D/E ratio standalone
WACC
Exchange Rate
1$ = Rs. 46
Valuation Figures
iGate
Patni
Patni (APV)
Firm Value
= Rs.
5372.92 Cr.
Value per
share = $
20.5
Firm Value
= Rs.
6795.55 Cr.
Value per
share = Rs.
507
Premium to
CMP =
10.2%
Firm Value
= Rs.
6922.63 Cr.
Cash Flow
from Tax
Shield =
Rs. 172.46
Cr.
EV/EBITDA
= 9.0x
Previous Transactions
Deal
Year
Valuation
EV/EBITDA
2009
$1.13 billion
2006
16.1
Oracle Corp
acquired i-flex
Solutions Ltd.
2005
19.6
Multiple Synergies
Opportunities
Creating a Tier-I
Provider
Consolidated Financial
Overview
Executive Summary
Thank You