Nasdaq-listed iGate, owned by former marketing head of Infosys Phaneesh Murthy, agreed to buy Patni Computer Systems for $1 billion in shares, the Economic Times reported citing two unnamed persons with knowledge of the transaction.

iGate will buy Patni Computer, India’s sixth biggest software exporter, at a price of about 525 rupees a share after reaching an agreement with Patni’s promoters on a non-compete provision.

Patni brothers will be restricted from starting a software business for about less than two years as per the non-compete clause, the report said citing the same sources.

Promoters of Patni and private equity firm General Atlantic have been making efforts to sell their respective stakes in Patni Computer since 2007.

Earlier attempts to sell stake had failed due to disagreements between the brothers and higher valuation expectations of the sellers than what the potential buyers were willing to pay.

The report quoted one of them with knowledge of the transaction as saying that the deal is done barring the signing of the share purchase agreement besides some terms and conditions.

Further details between the two parties are being worked out as the Patni board is expected to meet next week.

The three Patni brothers and private equity firm General Atlantic, who are selling their entire stake, hold 46 percent and 16 percent stake in the company respectively.

The Patni brothers hold approximately equal stakes and will get around $250 million each in the deal.

Credit Suisse, Ambit and Avendus are advising Patni and General Atlantic in the deal.

The report said iGate deal is bigger than Mahindra’s buy of Satyam Computer Services.

Last year, Phaneesh Murthy had evaluated a bid for Satyam Computer Services that was hit by an accounting scam, but eventually decided against bidding due to uncertainty surrounding Satyam’s account books.