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L&T Infotech and Mindtree, the two independently listed IT services companies under Larsen & Toubro Group, on Friday announced a merger that would create India's fifth-largest IT services provider.
The combined entity will be known as "LTIMindtree". The Boards of Directors of Mindtree and L&T Infotech (LTI) at their respective meetings held on Friday approved a composite scheme of amalgamation of both these independently listed IT services companies under the Larsen & Toubro Group. The proposed integration will see Mindtree and LTI join strengths to create an efficient and scaled up IT services provider exceeding USD 3.5 billion, Mindtree said in a statement. Significant scale benefits are anticipated through Mindtree and LTI's complementary strengths resulting in a stronger portfolio of offerings across verticals. Enhanced customer engagement and delivery model through industrialisation of delivery and streamlined value-enabling processes is expected to result in improvement in large deal capabilities. These opportunities will create a more distinctive employee value proposition and stronger partnerships with ecosystem players, it said. Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree. The new shares of LTI so issued will be traded on the NSE and BSE. Larsen & Toubro Limited will hold 68.73 per cent of LTI after the merger. "This merger represents our continued commitment to grow the IT services business in line with our strategic vision. The highly complementary businesses of Mindtree and LTI will make this integration a 'win-win' proposition for our customers, investors, shareholders, and employees," said A M Naik, Chairman, Larsen & Toubro Group. For now, the companies will continue to function independently. A Steering Committee will be constituted to oversee the transition till the merger process is complete, the company statement said. (ANI)
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