Mindtree and LTI announce their merger
BANGALORE, India and WARREN, NJ, May 6, 2022 /PRNewswire/ — At their respective meetings today, the Boards of Directors of Mindtree and LTI approved a composite plan to merge these two independent, publicly traded IT services companies under the Larsen & Toubro group. The proposed integration will see Mindtree and LTI join forces to create an efficient, large-scale IT service provider exceeding $3.5 billion. The transaction is subject to shareholder and regulatory approval.
Both Mindtree and LTI have achieved market-leading financial performance and created shareholder value. As recent changes in the industry (e.g. importance of large transactions, preference for end-to-end deals) benefit large-scale players, the two companies decided that the time was right to combine the strengths of both organizations to better serve customers.
Significant benefits of scale are expected from the complementary strengths of Mindtree and LTI, resulting in a stronger portfolio of offerings across all verticals. Improving the customer engagement and delivery model through the industrialization of delivery and the streamlining of value-driving processes should result in improved capabilities for large transactions. These opportunities will create a more distinctive value proposition for employees and stronger partnerships with ecosystem players.
Upon commencement of the program, all Mindtree shareholders will receive LTI shares on the basis of 73 LTI shares for every 100 Mindtree shares. The new LTI shares thus issued will be traded on the NSE and the BSE. Larsen & Toubro Limited will own 68.73% of LTI after the merger.
For now, the companies will continue to operate independently. A steering committee will be formed to oversee the transition until the merger process is complete. The name of the combined entity will be “LTIMindtree“Leveraging the advantages of both brands and creating value for all stakeholders.
Speaking of the merger, AM Naik, President, Mindtreesaid, “This merger represents our continued commitment to grow the IT services business in line with our strategic vision. The highly complementary businesses of Mindtree and LTI will make this integration a ‘win-win’ proposition for our customers, investors, shareholders, and employees.”
Speaking of the merger, S. N. Subrahmanyan, Vice President, Mindtreesaid, “We are confident that the proposed merger will help us leverage the combined strengths of these two organizations to unlock synergies through scale, cross-vertical expertise and talent pool. This will help us emerge as the partner of choice for the greats – scaling technology transformations and creating a distinct value proposition for employees.”
KPMG India Services LLP acted as financial advisor to Mindtree.
JSA (Advocates and Solicitors) acted as legal counsel to Mindtree.
Goldman Sachs (India) Securities Private Limited has provided a fairness opinion to Mindtree on the valuation made by the appraiser for the proposed transaction.
Ernst & Young Merchant Banking Services LLP have been appointed as assessors by Mindtree.
Mindtree (NSE: MINDTREE is a global technology consulting and services company that enables companies across all industries to achieve superior competitive advantage, customer experience and business results by leveraging digital and cloud technologies. A transformation partner digital for more than 275 of the world’s most pioneering companies, Mindtree brings deep domain, technology and consulting expertise to help rethink business models, accelerate innovation and maximize growth. and environmentally responsible, Mindtree is focused on growth as well as sustainability in creating long-term value for stakeholders more than 35,000 talented and enterprising professionals in 24 countries, Mindtree – a Larsen & Toubro Group company – is consistently recognized as one of the best places to work. www.mindtree.com Where @Mindtree_Ltd.
For more information contact: [email protected].
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