Patni Computer Systems, the country’s sixth-largest software services firm, plans to spend $200-400 million on purchase of an IT company, which is into Enterprise Application Integration segment and specialized in the insurance industry.

Mr Jeya Kumar, Chief Executive Officer, Patni Computer said, “We plan to close a deal in the next three months. There are a couple of assets we are looking at. For one we have issued term sheets.”

Sources reported that the buyout will be funded from Patni Computer’s cash balance, which stood at around $380 million.