Indian conglomerate Larsen & Toubro will merge its Mindtree Ltd and L&T Infotech software units in a $17.69 billion merger, Reuters reported.
The combined entity, to be called LTIMindtree, is part of L&T’s push for scale in the software industry.
Mindtree shareholders will get 73 shares of LTI for every 100 shares of Mindtree, LTI said in a statement. Shares of LTI ended Friday’s session with a valuation of $10.47 billion, while Mindtree closed at $7.24 billion.
End of the year, with the size we will be, will qualify us to really be considered for over $100 million deals,” LTI Chairman A. M. Naik said in a press conference, Reuters reported. The new entity will require 20-30 percent more employees more than the current 80,000 employed between the companies.
Previously, L&T owned a little over 60 percent in Mindtree and a 74 percent stake in L&T Infotech.
