L&T Infotech, Mindtree to merge

Bengaluru, May 6

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The Boards of Mindtree and L&T Infotech (LTI) at their respective meetings held today approved a composite scheme of amalgamation of both these independently listed IT services companies under the Larsen & Toubro Group. 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 transaction is subject to shareholder and regulatory approvals.

Both Mindtree and LTI have delivered market-leading financial performance and created value for shareholders. Given that recent industry shifts are benefitting at-scale players, the two companies have decided that the time is appropriate to combine the strengths of both organizations to better serve the customers.

For now, the companies will continue to function independently. A steering committee will be constituted to oversee the transition till the merger process is complete. — PTI

Deal dynamics

• Mindtree shareholders will get 73 L&T Infotech (LTI) shares for every 100 shares held
• The new shares of LTI so issued will be traded on the NSE and BSE. Larsen & Toubro Ltd will hold 68.73% of LTI after the merger

Win-win proposition

The complementary businesses of Mindtree and LTI will make this integration a ‘win-win’ proposition for our customers, investors, shareholders and staff. — AM Naik, chairman, L&T group