In an all-share deal to unlock potential scale and fight for mega deal wins with other IT giants, L& T Infotech announced a merger with in an all-share deal to unlock potential scale and fight for mega deal wins with other Mindtree chief Debashis Chatterjee will head the combined entity of "LTIMindtree", officials announced Friday, as L & T Infotech CEO and MD Sanjay Jalona resigned for personal reasons.
The proposed integration will see L & T Infotech and Mindtree join forces to create an efficient and scaled-up IT services provider with an annual revenue exceeding $3.5 billion.
An official statement said Mindtree shareholders will get 73 shares of LTI for every 100 shares of Mindtree.
L&T's push for scale in the high-growth software industry follows a pandemic-led surge in demand for digitalisation, as global businesses invest billions of dollars in cloud-computing, digital payment infrastructure and cyber security.
"This merger will help us emerge as a partner of choice for large-scale tech transformations and create a distinctive employee value proposition," S. N. Subrahmanyan, vice-chairman of Mindtree, said in a statement.
Sector giants, including Tata Consultancy Services, Infosys, and Wipro, have been securing larger contracts and investing heavily in services like cloud infrastructure and data analytics. India's tech industry reached over $220 billion in revenue in FY22.