The L&T group on Monday announced the merger of L&T Infotech (LTI) and Mindtree into ‘LTI-Mindtree’ with immediate effect. With this, the combined entity will become the sixth-largest IT services firm by revenue and the fifth-largest in terms of market capitalisation. This is one of the largest mergers in the Indian information technology (IT) sector.
L&T Group Chairman AM Naik announced the merger and said that the Mindtree shareholders will get 73 LTI shares for every 100 shares they hold post-merger, and the record date for the same is November 24. L&T, the merging entity’s parent company will own 68.73 per cent of it.
Earlier in May, the company had announced the merger and final step comes following the legal and regulatory approvals, Naik said.
Naik said, “LTIMindtree is integral to L&T’s technology-led growth vision and is poised to play a crucial role in the expansion and diversification of our services portfolio. The highly complementary strengths of LTI and Mindtree make this integration a win-win proposition for all our stakeholders — clients, partners, investors, shareholders, employees, and communities — furthering L&T’s tradition of innovation, excellence, trust, and empathy.”
S N Subrahmanyan, chief executive officer and managing director of L&T, and vice-chairman of LTIMindtree, said, “We are grateful to the authorities for the swift passage of the proposed transaction through statutory processes and for its approval in a record time. This integration is much more than just the coming together of two highly successful companies. It is about turning the collective wisdom of the two companies into a much larger force for creating long-term value for all our stakeholders.”
Debashis Chatterjee, chief executive officer and managing director of LTIMindtree, said, “Amid the proliferation of new business models and revenue streams in a rapidly converging world, LTIMindtree will help businesses proactively take on and shape the future by harnessing the full power of digital technologies. Armed with top talent, comprehensive offerings, and a cumulative experience of more than five decades, LTIMindtree brings the diversity of scale and capabilities required to help businesses reimagine possibilities, deliver impact, and get to the future, faster.”
The two companies are expected to announce their combined results beginning in the third quarter.