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.
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.