LTI, Mindtree Merger Creates $3.5B IT Services Giant

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Larsen & Toubro (L&T) Infotech (LTI) is merging with Mindtree to create LTIMindtree — a $3.5 billion IT consulting, services and software giant, the companies have disclosed following off-and-on rumors about the deal.

This is technology M&A deal number 452 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

LTI and Mindtree: Before and After the M&A Deal

LTI’s parent — Larsen & Toubro — has owned Mindtree since 2019. According to Blooomberg, key financial details to know before the deal was announced included:

  • Larsen & Toubro holds about a 61% stake in Mindtree, and 75% of L&T Infotech (LTI).
  • Mindtree has a market value of $8.3 billion, and L&T Infotech has a market capitalization of $13.6 billion.

Near-term, the companies will continue to function independently. A Steering Committee will be formed to oversee the transition until the merger process is completed. Once the M&A deal is completed:

  • Mindtree CEO Debashis Chatterjee will lead the combined entity.
  • 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 % of LTI after the merger.

LTI and Mindtree Merger: Executive Perspectives

In a prepared statement about the deal, LTI Chairman A. M. Naik said:

“This merger represents our continued commitment to grow the IT services business in line with our strategic vision. The highly complementary businesses of LTI and Mindtree will make this integration a ‘win-win’ proposition for our customers, investors, shareholders, and employees.”

Added LTI Vice Chairman S. N. Subrahmanyan:

“We are confident that the proposed merger will help us build on the combined strengths of both these organizations to unlock synergies through scale, cross-vertical expertise, and talent pool. This will help us emerge as a partner of choice for large-scale tech transformations and create a distinctive employee value proposition.”

LTIMindtree’s IT Services Rivals

Once the merger is completed, LTIMindtree could potentially scale to compete more aggressively against  TCSInfosysHCLWipro and Tech Mahindra, among other big India-based IT services firms, ChannelE2E believes.

This blog originally published in April 2022. Updated May 9, 2022, to reflect the deal’s official announcement.

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