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 technology outsourcing specialist iGATE (Nasdaq: IGTE) slipped as much as 10% in intraday trading on heavier-than-average volume.

So what: The drop today follows a similar-sized drop yesterday as investors reacted to the company's proposed acquisition of Patni Computer Systems (NYSE: PTI). iGATE is teaming up with private equity group Apax Partners and will be taking on as much as $700 million in debt and selling as many as 10 million new shares to finance the deal. The deal has ruffled some investor feathers as iGATE is trying to absorb a company larger than itself.

Now what: Talk of this transaction has been making the rounds for a few months now, and I'll admit to being surprised that iGATE is actually pulling it off. It's hoped that the deal will give the combined company more scale to be able to better compete with larger industry players like Infosys (Nasdaq: INFY) and Cognizant (Nasdaq: CTSH). However, it's a darn risky move that will add a significant amount of debt and dilute current shareholders. In my view, the challenges that iGATE has ahead, trying to absorb a larger rival, make the company's stock a pretty speculative one right now.

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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 prefers dividends over a sharp stick in the eye.