L&T Infotech today announced a merger agreement with Mindtree. The two companies will be merging their shared services functions and expertise to create a new entity that will serve both organizations with a broad range of business-critical technology services, including infrastructure management, application development, testing, enterprise application integration, and business consulting.
The new organization is going to be based in Bangalore, India, and will operate across the globe as a jointly owned subsidiary. Key members of both teams have been identified for leadership roles in the new organization.
Both L&T Infotech and Mindtree have existing relationships with customers in India and abroad. This new entity is expected to enhance the strength of both organizations by increasing their capacity to serve their existing customers better while also enabling them to establish stronger relationships with new clients.
At the time of completion of the merger, all Mindtree shareholders will receive shares of LTI at a ratio of 73 shares of LTI per 100 Mindtree shares. NSE and BSE will trade the new shares of LTI. LTI will be owned by Larsen & Toubro Limited after the merger for 68.73 percent. LTI and L&T will operate independently for now.
This agreement provides an opportunity to jointly learn from each other’s strengths and create value for customers by leveraging the complementary skill sets of each organization.