A consortium of Apax Partners and iGate are close to buying 63 percent of Patni Computer, a source with direct knowledge of the matter told Reuters on Monday, in a deal valued at about $915 million.
The Apax-iGate consortium has offered about 500 rupees a share for the stake, the source said, adding that a deal would likely be announced early next week.
Patni shares closed at 486.40 rupees on the Bombay Stock Exchange on Monday.
The consortium, which beat a rival team of Carlyle, Advent International and Akansa Capital to the deal, will make an open offer for another 20 percent stake in Patni following the agreement, the source said
The founding Patni brothers are selling their 46 percent stake, while private equity firm General Atlantic is selling its roughly 17 percent holding in the software services exporter, sources have previously told Reuters.
Private equity activity is surging in India, with $6.57 billion invested in the first three quarters of 2010, more than double the $2.5 billion invested during the same period last year, according to Venture Intelligence, a research firm.
Private equity firms typically make minority investments in India, where entrepreneurs are often reluctant to sell out and where full buyouts are rare.