Oppenheimer Reports On PTI's Acquisition By IGTE

Oppenheimer is maintaining its Outperform rating and its $24 price target on iGATE IGTE following news that the company has finished its acquisition of Patni Computer Systems PTI. Says Oppenheimer, in its report, “IGTE today completed the previously announced Patni acquisition, streamlined its management and board structure, and articulated both two-year and five-year combined company financial objectives that imply significant cash EPS accretion (directionally consistent with our prior pro forma estimates). Accordingly, we are significantly raising our FY11 and FY12 estimates, which now incorporate Patni earnings, cost synergies and deal financing costs/share dilution.” IGTE closed at $18.12 and PTI at $16.67 yesterday.