The merger between IT companies L&T Infotech (LTI) and Mindtree is expected to be announced on Friday. There has been speculation that Larsen & Toubro, which owns 61 per cent of Mindtree and 74 per cent of LTI, was contemplating merging the two companies.
According to reports, L&T Group Chairman AM Naik will announce the details related to merger at a media briefing at 4 pm today.
L&T Group had successfully mounted a hostile takeover of Mindtree in 2019.
After acquiring and merging over seven companies across various capabilities since 2016, Larsen & Toubro Infotech’s potential merger with Mindtree could help it achieve scale and right positioning to unlock mega deals that hitherto went to big Indian IT services companies, as per experts.
After the possible merger between the two companies, the combined entity will have a market capitalisation of more than $23 billion. At present, the combined revenue of LTI and Mindtree is around $3.5-4 billion.
Both LTI and Mindtree were trading over 3 per cent lower on the BSE in the morning in a weak market.
May 06, 2022