Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of IT services provider iGate
So what: Though we can say that iGate competes with major global outsourcers such as Infosys
Now what: The drop in iGate's stock today shouldn't come as much of a surprise. By going after the larger Patni, iGate is setting up a deal that's riskier than most. And while the valuation multiples on Patni are low compared to iGate and other industry players, the sellers in this deal are the company's founding family and private equity group General Atlantic -- neither of whom is likely to be interested in selling if the price wasn't attractive. Tack on top of that the fact that iGate and Apax will face competition for the deal from Advent International and Carlyle Group, and you have even more reason for indigestion. Of course for now there's a lot of speculation involved in how (and whether) this will unfold, so investors will want to stay tuned as more details emerge.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy assures you no Wookiees were harmed in the making of this article.