Patni Computer buys US firm for $7.5 mn

IT consultancy and services provider Patni Computer Systems has acquired US-based The Reference, a financial and investment solutions provider, for $7.5 million in cash, including its 44 existing employees.

"The acquisition will help Patni Computer to widen its reach into investment and financial sectors as we look into synergically integrating it with the company," Patni Computers chairman and chief executive officer Narendra K Patni told newspersons in Mumbai on Tuesday.

The acquisition of Boston-based Reference, which has an 'established presence' in the financial marketplace, advising and consultancy services, is the first-ever acquisition of the company, Patni added.

The Reference has presence in Boston and New York, and had posted a revenue of $8.5 million in 2002, he said.

Patni Computer expects to complete acquisition formalities by June, with the operations of the acquired firm being merged with Patni Financial Services, a subsidiary of the company. 

"We are looking for a vertical growth in the financial marketplace by this acquisition, rather than horizontal growth we were opting for till date," the chairman and CEO said. Commenting on the company's IPO plans, Patni said, 'it is not the right time' and added investment bankers have already been shortlisted 'as and when we enter the market'.

On competition from China, he said SARS (Severe Acute Respiratory Syndrome) had given a 'breathing' space for Indian IT companies, which were badly affected by competition from the Asian country.