NEW DELHI: Larsen & Toubro Infotech (LTI) and Mindtree announced a merger on Friday, with an aim to create India's next large-scale IT services player.
"The boards of directors of Mindtree and LTI at their respective meetings approved a composite scheme of amalgamation of both these independently listed IT services companies under the Larsen & Toubro Group," LTI said in an official filing to the bourses.
The proposed integration will see Mindtree and LTI join strengths to create an efficient and scaled up IT services provider exceeding $3.5 billion, the release said.
All shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares for every 100 shares of Mindtree.
The new shares of LTI will be traded on both BSE and NSE. Besides, Larsen & Toubro Limited will hold 68.73 per cent of LTI after the merger, the release said.
Till the merger is complete, both Mindtree and LTI will continue to operate independently.
"The name of the combined entity will be 'LTIMindtree' leveraging the advantages of both the brands and creating
value for all the stakeholders," the IT services firm said.
Speaking about the merger, A M Naik, chairman of Mindtree said: “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.”
Larsen & Toubro (L&T) acquired Mindtree in 2019, following a rare hostile bid for a controlling stake, the first such pursuit in India's software services industry.
L&T owns a little over 60% in Mindtree and a 74 per cent stake in L&T Infotech.
(With inputs from agencies)
