Global IT services provider Patni Computer Systems is buzzing strong on the bourses. The stock zoomed over 8 per cent on Thursday taking a cue from the news of its possible buyout by L&T InfoTech.
Both L&T Infotech and Patni have called the news to be speculative in nature but they don't deny it outright either.
"The M&A space is not a spectator sport. I can’t comment on market speculation but want to get to a billion dollars in revenue and both organic and inorganic route will be used for that," said Sudip Banerjee, CEO of L&T Infotech.
L&T Tnfotech, part of engineering & construction major Larsen & Toubro (L&T), currently clocks around $500 million in revenue. After missing out on Satyam to Tech Mahindra, it has been actively looking for M&A options that will help it log into the big league.
Sources say L&T is evaluating Patni as a buyout target but valuations is considered to be the sticky point.
Deal or no deal, Sudip Banerjee, the man at the helm of L&T Infotech, knows not everything goes as per plan but his immediate focus is to grow the company.
"The next two quarters are looking promising. We are hiring and will leverage the parent company brand as well and go to market together," said Banerjee.
L&T's Chairman and Managing Director AM Naik has been on a silent mode ever since Satyam's takeover by Mahindra's. But it could very well be the lull before he storms in with Patni.