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LTI Seeks to Acquire Mindtree to Create $2 Billion IT Services Giant

Larsen & Toubro (L&T) Infotech (aka LTI) is seeking to acquire IT consulting services rival Mindtree. The potential deal, if confirmed, would create India’s sixth largest IT services firm — trailing only TCS, Infosys, HCL, Wipro and Tech Mahindra.

Still, some key Mindtree shareholders are digging in to fight the takeover while potentially seeking alternative White Knight buyers to save the firm from LTI’s bid, according to multiple reports.

LTI is a global technology consulting and digital solutions company with more than 300 customers. The company’s Mosaic platform focuses on digital transformation projects — emphasizing mobile, social, analytics, IoT and cloud journeys. The company had more than $1 billion in revenue and 28,000-plus employees as of late 2017.

Mindtree is a global IT consulting and outsourcing firm with headquarter offices in India and New Jersey, has roughly 20,000 employees and $850 million in annual revenue, according to 2018 data. The company has more than 330 customers in 17 countries.

The combined companies would likely have more than $2 billion in combined revenues for 2019, according to the most recent nine-month financial data from both firms.

LTI: Bidding to Acquire Mindtree?

LTI’s strategy apparently involves a two-step plan. First, the company is acquiring about 20.3 percent of Mindtree from key shareholders, and then LTI may make a separate bid to gain 51 percent control of the company, reports say.

However, Mindtree’s founders apparently oppose the rumored deal. And one of the co-founders has quit his role at another company to focus on saving Mindtree from the proposed LTI buyout.

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3 Comments

Comments

    Sam:

    Why so much pushback to create shareholder value? This is great for shareholders and very bad if the takeover attempt fails.

    Joe Panettieri:

    Hi Sam:

    This LiveMint coverage explains some of the potential concerns with the potential deal.
    -jp

    CB Singh:

    I really don’t understand why L&T infotech is trying to acquire Mind tree that is not interested.
    If l&t infotech need some more business then this would expand themself.

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